The City of Spartan's Fiscal Year Ends on December 31

question 53

Multiple Choice

The City of Spartan's fiscal year ends on December 31. On October 1, 2020, the city issued $1,000,000 of 6%, 10-year term bonds with semiannual interest payments due on April 1 and October 1 each year, beginning on April 1, 2021. What amount of expenditures should the city recognize in its debt service fund for the years 2020 and 2021? 

• A) $60,000 in 2020; $60,000 in 2021.
• B) $30,000 in 2020; $60,000 in 2021.
• C) $15,000 in 2020; $6,000 in 2021.
• D) $0 in 2020; $60,000 in 2021.

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Definitions:

Full Bench

A full bench refers to the situation when all the judges of a court sit together to hear a case, usually reserved for matters of great significance or complexity.

United States Supreme Court

The highest federal court in the United States, established pursuant to Article III of the U.S. Constitution, with ultimate appellate jurisdiction over all federal and state court cases involving matters of federal law.

Justices

Judges of the highest courts, particularly those within a country's supreme court, responsible for interpreting the law.

Choice-of-Law Clause

A provision in a contract that specifies which jurisdiction's laws will be applied to interpret the contract.