When the Debt Service Fund Makes a Payment of Principal

question 8

Multiple Choice

When the debt service fund makes a payment of principal and interest on an outstanding long-term debt, the governmental activities accounts:

• A) Reflect the principal payment only.
• B) Reflect the interest payment only.
• C) Have no record of the transaction.
• D) Reflect both principal and interest payments.

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Definitions:

Test's Reliability

The consistency with which a test measures what it is supposed to measure.

Intelligence Test

A standardized test designed to measure human intelligence, cognitive abilities, and potential for academic achievement.

Reliability

The degree to which an assessment tool or measure produces stable and consistent results over repeated applications or observations.

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together, signifying the strength and direction of their relationship.