Which of the Following Transactions Would Not Be Reported as Expenditures

question 37

Multiple Choice

Which of the following transactions would not be reported as expenditures in a Debt Service Fund?

• A) Issuance costs incurred in a refunding bond issuance.
• B) Payments to escrow agents with resources transferred from the General Fund.
• C) Arbitrage rebate.
• D) Repayment of BANs issued to finance a capital project.

---

Definitions:

Interest Revenue

Interest Revenue is income earned from investments in various debt instruments, including savings accounts, bonds, and loans, where others pay interest to the entity holding those assets.

Long-Term Investments

Investments held by a company for more than one year with the intention of yielding financial returns, such as stocks, bonds, or real estate.

Marketable Stocks

Shares that are easily bought or sold in the market due to their high liquidity and the presence of numerous buyers and sellers.

Marketable Bonds

Bonds that can be easily sold in the financial markets because they are highly liquid and attractive to investors.