Because a Fund Is an Accounting Entity,each Fund Has

question 21

Multiple Choice

Because a fund is an accounting entity,each fund has
I.its own accounting equation.
II.its own journals,ledgers,and other accounting records.
III.its own separate auditor.

• A)I only
• B)II only
• C)I and II
• D)I,II and III

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Definitions:

Bond Premium

The amount by which the market price of a bond exceeds its face value, typically occurring when the bond's interest rate is higher than the market rate.

Straight-Line Amortization

A method of systematically reducing a loan or the cost of an intangible asset over a fixed period, where equal amounts are expensed in each period.

Semiannual

Occurring twice a year; a term often used in finance to describe payments, interest accruals, or other events that happen every six months.

Unamortized Discount

The portion of a bond discount that has yet to be expensed in the income statement over the bond's life.