When the County Makes the Transfer the Entry in the Debt

question 31

Multiple Choice

When the County makes the transfer the entry in the debt service fund should be

• A)Debit Cash; Credit Revenue.
• B)Debit Cash; Credit Other Financing Sources.
• C)Debit Cash; Credit Interest Payable.
• D)Debit Cash with Fiscal Agent; Credit Other Financing Sources.

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Definitions:

Amortized

Describes a loan or mortgage with scheduled periodic payments that cover both interest and principle over a certain time period.

Quarterly Withdrawals

Withdrawals made from an account or investment every three months.

Investment Earning

The profit generated from investing capital in financial assets, such as stocks, bonds, or real estate.

Compounded Annually

Interest calculation method where interest is added to the principal once a year.