The City of Holbrook Transferred $100,000 from the General Fund

question 32

Multiple Choice

The City of Holbrook transferred $100,000 from the general fund to a debt service fund for payment of interest. The appropriate entry in the debt service fund to record this transfer would be

• A) Debit Cash $100,000; Credit Revenue $100,000.
• B) Debit Cash $100,000; Credit Reciprocal transfer-in $100,000.
• C) Debit Cash $100,000; Credit Fund balance $100,000.
• D) Debit Cash $100,000; Credit Nonreciprocal transfer-in $100,000.

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Definitions:

Convertible Bond

A financial instrument that can be transformed into a certain number of the issuer's shares at various points in its existence, most often per the discretion of the individual possessing the bond.

Putable Bond

A type of bond that gives the holder the option to require the issuer to repurchase the security before its maturity date at a predetermined price.

American Options

Financial derivatives that can be exercised by the holder at any time before they expire.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock or other financial asset at a specified price within a specific time period.