On the Due Date for Bond Interest,the Debt Service Fund

question 41

Multiple Choice

On the due date for bond interest,the debt service fund journal entry (or entries) will include:

• A) A debit to Bonds Payable.
• B) A debit to Interfund Transfers Out.
• C) A debit to Expenditures-Bond Interest.
• D) A debit to Interest Expense.

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Definitions:

Economic Recovery

A period of increasing business activity signaling the end of a recession, marked by a rise in GDP, employment, and consumer spending.

Transfer Payments

These are payments made by the government to individuals or other entities without expecting any goods or services in return, such as social security benefits or unemployment compensation.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Paradox Of Thrift

The economic theory that suggests individual savings can lead to a decrease in aggregate demand, thus hindering economic growth.