If a Special Tax Is Levied to Finance Debt Service

question 12

Multiple Choice

If a special tax is levied to finance debt service for a particular debt issue, the entry to record the levy in the Debt Service Fund would include

• A) Debit Taxes Receivable and credit to Revenues.
• B) Debit Taxes Receivable and credit to Other Financing Sources.
• C) Debit Prepaid Assets and credit to Revenues.
• D) Tax levies may not be reported in a Debt Service Fund.

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Definitions:

Measurement Systems

Systems and procedures used to assign numbers or other symbols to quantify the properties of objects or events according to specific rules.

P-chart

A type of control chart used for monitoring the proportion of defective items in a manufacturing process over time, helping to ensure quality control.

Nonconforming Items

Products or outcomes that do not meet the predefined standards, specifications, or expectations.

Standard Deviation

A statistical measure that represents the dispersion or variation of a set of data values, indicating how much the individual data points differ from the mean.