If the Governing Body Contributes $65,000 from the General Fund

question 30

Multiple Choice

If the governing body contributes $65,000 from the General Fund to a Debt Service Fund, the General Fund statements should report

• A) A debt service expenditure of $65,000.
• B) An other financing use of $65,000.
• C) A capital contribution of $65,000.
• D) A reimbursement of $65,000.

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Definitions:

Capital Contributions

Monetary or non-monetary assets that are provided to a company by its owners or shareholders to increase its equity.

Capital Account

An account on a country's balance of payments that records transactions involving the acquisition or disposal of assets and liabilities.

Income Distribution

The manner in which total income is spread amongst the shareholders, partners, or other stakeholders in a company or economy.

Net Income

The total profit of a company after all revenues, expenses, taxes, and dividends have been deducted.