When a Capital Project Has Been Constructed Entirely with Bond

question 34

Multiple Choice

When a capital project has been constructed entirely with bond proceeds and funds are left over at the end of the project,which of the following would normally take place?

• A) The funds would be transferred to a debt service fund; the capital projects fund would debit Other Financing Uses-Transfers Out and the debt service fund would credit Other Financing Sources-Transfers In.
• B) The funds would be transferred to a debt service fund; the capital projects fund would debit Expenditures and the debt service fund would credit Revenues.
• C) The funds would be transferred to the General Fund and expended for any purpose desired by the management of the government.
• D) The funds would be returned to the bondholders.

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Definitions:

Jacob van Ruisdael

A Dutch painter of the Golden Age, renowned for his landscapes depicting the Dutch countryside, emphasizing dramatic skies, rugged terrains, and a deeply moody atmosphere.

Specialized

Having a particular area of expertise or focusing on a specific subset of a larger field, often requiring detailed knowledge or skill.

Landscapes

This term relates to visual arts, describing artworks that depict natural scenery such as mountains, valleys, trees, rivers, and forests.

Inanimate Objects

Items that do not possess life, often depicted in art to convey symbolism, enhance the composition, or provide context.