When a Capital Project Has Been Constructed Entirely with Bond

question 26

Multiple Choice

When a capital project has been constructed entirely with bond proceeds and funds are left over at the end of the project,which of the following would normally take place?

• A) The funds would be transferred to a debt service fund; the capital projects fund would debit Other Financing Uses-Transfers Out and the debt service fund would credit Other Financing Sources-Transfers In.
• B) The funds would be transferred to a debt service fund; the capital projects fund would debit Expenditures and the debt service fund would credit Other Financing Sources-Transfers In.
• C) The funds would be transferred to the General Fund and expended for any purpose desired by the management of the government.
• D) The funds would be returned to the bondholders.

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Definitions:

Manipulating

The process of altering variables in an experimental setting to determine their effects on dependent variables.

Variables

Elements, factors, or conditions that can change and affect the outcomes of experiments and studies in various fields, especially in research and statistics.

Dependent Variable

The variable being tested and measured in an experiment, which is expected to change as a result of manipulations of the independent variable.

Industrial Designer

A professional who develops concepts and designs for manufactured products, focusing on aesthetics, functionality, and usability.