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:

Drastically

Describing actions taken with extreme or significant impact, often implying a substantial change or effect.

Persuasion

The process of swaying an individual's beliefs, attitudes, or actions through the use of argument, logic, or enticement.

Impersonal

Lacking personal feeling or attachment; not influenced by, showing, or involving personal feelings.

Reduces Resistance

The act of minimizing opposition or reluctance, often in the context of implementing changes or new ideas.