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:

Class Warfare

The conflict between different socio-economic classes, primarily concerning issues of wealth disparity, social inequality, and political power.

Transnational Bodies

Organizations or entities that operate across national boundaries, influencing or governing aspects of global affairs.

Autonomy

The right or condition of self-government, or the capacity of an individual to make an informed, un-coerced decision.

National Governments

The political authorities that govern a nation, responsible for creating laws, policies, and managing the country's affairs.