Previously Atomic City Had Issued Bonds with a Face Value

question 63

Multiple Choice

Previously Atomic City had issued bonds with a face value of $10 million to construct a new city hall. Because the money will not be needed for several months, the city invested the bond proceeds in U.S. Government securities. Assume that the city maintains its books and records in a manner that facilitates the preparation of fund financial statements. What is the appropriate entry when the city receives interest on the investments?

• A) Debit Cash; Credit Revenue.
• B) Debit Cash; Credit Other financing sources.
• C) Debit Cash; Credit Deferred inflow of resources.
• D) No entry required.

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Definitions:

Pearson R

A statistical measure of the strength and direction of a linear relationship between two variables.

Absolute Size

A measure or quantity's actual size or magnitude, not relative to other measures or quantities.

Strength

The capacity to withstand force or stress without alteration, often used in physical contexts but also applicable to emotional or character attributes.

Effect Size

A quantitative measure of the magnitude of a phenomenon or the strength of the relationship between variables, commonly used in statistical analyses.