To Offset Engineering and Design Costs Incurred Prior to the Issuance

question 54

Multiple Choice

To offset engineering and design costs incurred prior to the issuance of a long-term bond issue, a capital projects fund borrowed the sum of $75,000 on a short-term basis from First National Bank. This transaction should be recorded in:

• A) The capital projects fund.
• B) The debt service fund.
• C) The special revenue fund.
• D) None of the options are correct. Debt is not recorded in governmental funds.

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly used to estimate the accuracy of sample mean as a predictor of the population mean.

Pooled Estimate

Combining estimates from different populations to obtain a single estimate that is more accurate and has a higher power due to a larger sample size.

Environmental Protection Agency

A U.S. government agency tasked with protecting human health and the environment through regulations and various initiatives.

Air Quality Standards

Regulations that define the maximum acceptable concentration of pollutants in the air, set to protect human health and the environment.