When a Cash and Investment Pool of a Certain City

question 6

Multiple Choice

When a cash and investment pool of a certain city was established,the debt service fund transferred investments to the pool having a cost of $3,000,000 but a current fair market value of $3,100,000.To record this transaction,the journal entry made by the debt service fund will include:

• A) A debit to Equity in Pooled Cash and Investments in the amount of $3,000,000.
• B) A credit to Revenues-Change in Fair Value of Investments in the amount of $100,000.
• C) A debit to Investments in the amount of $3,000,000.
• D) A credit to Investments in the amount of $3,100,000.

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Definitions:

Intelligence Quotient

A measure of a person's intellectual abilities in relation to the average performance of others in their age group.

Deviation Scores

Statistical measures that indicate the difference between an observed value and the mean of a dataset, showing how far from the "normal" a particular value lies.

Normal Distribution

A bell-shaped distribution of data where most values cluster around a central mean or average value.

Mental Age

An estimate of an individual's level of cognitive development compared to others, based on performance in intelligence tests.