To calculate net general obligation debt, which amount should be subtracted from total general obligation debt?

In calculating net general obligation debt, it is important to subtract amounts that are externally restricted for specific purposes, such as debt service. These restricted amounts represent funds that cannot be used for anything other than their designated purpose, which is to pay off the principal associated with the general obligation debt. By removing this amount from the total general obligation debt, we arrive at the net general obligation debt figure that accurately reflects the amount the entity truly owes after accounting for the funds that are already earmarked for repayment.

This distinction is critical in financial reporting, as it provides a clearer picture of the entity's financial obligations and available resources. While other options include amounts for interest payments or for cumulative purposes, they do not solely focus on the specific restriction for principal payments, which is essential for the calculation of net debt in this context.