On the Due Date for a Bond Interest and Principal

question 23

Multiple Choice

On the due date for a bond interest and principal payment, the debt service fund journal entry (or entries) will include: 

• A) A debit to Bonds Payable.
• B) A debit to Interfund Transfers Out.
• C) A debit to Expenditures-Bond Interest.
• D) A debit to Interest Expense.

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Definitions:

Business Expenditures

Business expenditures are the costs incurred in the operation of a business, which can include salaries, rent, utilities, and purchasing materials or equipment.

Realistic Accuracy Model

A framework in psychology that explains how accurate personality judgments are achieved through the interaction of four factors: relevance, availability, detection, and utilization.

Trait Of Honesty

A characteristic of being truthful, transparent, and straightforward in actions and words.

Hypothetical

Referring to a situation or statement based on conjecture, an assumption, or a proposition for the sake of argument.