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.

---

Definitions:

Myelencephalon

The posterior part of the brainstem, comprising the medulla oblongata, involved in regulating vital bodily functions.

Medulla Oblongata

A part of the brainstem involved in autonomic functions, such as breathing, heart rate, and blood pressure.

Telencephalon

The largest part of the brain, responsible for voluntary motor function, cognition, emotion, and sensory processing.

Cranial Nerve VII

Also known as the facial nerve, it controls the muscles of facial expression, convey taste sensations from the anterior two-thirds of the tongue, and supply the lacrimal and salivary glands.