Assume That Kelly County Issues $3,000,000 in General Obligation Bonds

question 14

Multiple Choice

Assume that Kelly County issues $3,000,000 in general obligation bonds to build a new fire station and $7,000,000 in revenue bonds to finance the upgrade of their water treatment facility. How will these transactions affect the funds of the county?

• A) Financial assets of the Capital Projects Fund will increase by $10,000,000, as will the related fund liabilities.
• B) Financial assets and related fund liabilities of the Capital Projects Fund will increase by $3,000,000; current assets and long-term liabilities will increase by $7,000,000 in the Water Enterprise Fund.
• C) Financial assets, but not the related fund liabilities, will increase in the General Fund by $10,000,000.
• D) Financial assets, but not the related fund liabilities, will increase in the Capital Projects Fund by $3,000,000; current assets and the long-term liabilities will increase by $7,000,000 in the Water Enterprise Fund.

---

Definitions:

Compensate For

To make up for something lacking or deficient, often by exerting extra effort or using an alternative strategy.

Move Away From

To change position or direction to increase distance from a specific location, situation, or concept.

Integrate

To combine two or more elements into a whole, or to assimilate individuals or groups into a larger community or organization.

Anima and Animus

Concepts in Jungian psychology representing the feminine inner personality in men (anima) and the masculine inner personality in women (animus).