Proceeds of Tax Supported Bonds Are Recognized in a Capital

question 110

Multiple Choice

Proceeds of tax supported bonds are recognized in a capital projects fund as aan:

• A) Revenue.
• B) Liability.
• C) Other Financing Source.
• D) Other Financing Use.

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Definitions:

Assets

Economic resources controlled or owned by a business or individual from which future economic benefits are expected to flow.

Statement of Cash Flows

A fiscal report that demonstrates the consequences of shifts in balance sheet accounts and income on cash and cash equivalents, organizing the analysis into operations related to investing, financing, and operating activities.

Investing Transactions

Financial activities related to the purchase and sale of long-term assets or investments.

Financing Transactions

Activities that result in changes to the size and composition of the equity and borrowings of an entity.