A Capital Projects Fund Might Be Used to Account for Which

question 51

Multiple Choice

A capital projects fund might be used to account for which of the following activities?

• A) Maintaining sidewalks.
• B) Building a parking garage.
• C) Providing water and sewer services.
• D) Servicing long-term debt.

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Definitions:

Compounded Monthly

Interest that is calculated on the principal and the accumulated interest of previous periods on a monthly basis.

Loan

Money lent to a borrower, which is expected to be paid back with interest.

Interest Rate

The fraction of a loan billed as interest to the borrower, commonly expressed as a yearly percentage of the remaining loan amount.

Payments

Amounts of money transferred from one party to another as fulfillment of a financial obligation.