Use the Following Information to Answer Questions

question 38

Multiple Choice

Use the following information to answer questions
The citizens of a specific area of the City of Arlington approved the construction of sidewalks in their residential neighborhood and approved a $1 million bond issue to finance construction of those sidewalks.The citizens agreed to assess themselves for 20 years in an amount sufficient to pay principal and interest on the bonds.The City will oversee the construction of the sidewalks and act as agent for servicing the debt.The City does not guarantee the debt nor does it assume any legal or moral obligation for the bonds.
-The proceeds of the bond issue should be recorded in which fund of the City of Arlington?

• A)Agency Fund.
• B)Special Assessment Fund.
• C)Capital Projects Fund.
• D)Debt Service Fund.

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Definitions:

Weighted-Average Method

An inventory cost calculation method that averages the cost of all similar items available, regardless of purchase date.

Equivalent Unit

A concept in cost accounting used to compute the cost of partially completed goods, translating them into a number of fully completed units.

Assembly Department

A section of a manufacturing company where components are assembled into final products.

Costs Per Unit

The total expense involved in manufacturing or acquiring a product divided by the number of units.