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.

---

Definitions:

Temporal Lobe

A region of the cerebral cortex involved in processing auditory information, language, and emotional response.

Broca's

Related to an area in the frontal lobe of the dominant hemisphere (usually the left) of the brain, involved in language processing, speech production, and comprehension.

Wernicke's

Refers to Wernicke's area, a region in the brain associated with understanding spoken language.

Receptive

Being open and responsive to ideas, stimuli, or inputs from the external environment.