Use the Following Information to Answer Questions

question 52

Multiple Choice

Use the following information to answer questions
Lewis County uses a fiscal agent to distribute payments of interest to bondholders.Interest payments are due on July 1 of each year.The fiscal agent requires the County to transfer by June 20 the cash necessary to make the July 1 payments.
-How would Lewis County account for the amount transferred on June 20 if the County maintains its books and records in a manner that facilitates the preparation of the fund financial statements?

• A)Debit Cash with fiscal agent and expenditures; Credit Cash and interest payable.
• B)Debit Cash with fiscal agent and interest expense; Credit Cash and interest payable.
• C)Debit Expenditures; Credit Cash.
• D)Debit Cash with fiscal agent; Credit Cash.

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Definitions:

Deviations

Instances of diverging from a standard, norm, or expected pattern.

Implementation Time

The period required to put a plan, project, or policy into effect.

Returns

The profits or benefits gained from an investment or venture.

Project Management

The process of leading the work of a team to achieve goals and meet success criteria at a specific time.