The Proceeds from a Bond Issuance for the Construction of a New

question 47

Multiple Choice

The proceeds from a bond issuance for the construction of a new public school should be recorded in the ________ fund at the time the bonds are sold.At the time of the bond issue,the debit is to cash and the credit is to ________.

• A)capital projects; revenues
• B)general; bonds payable
• C)general; other financing sources
• D)capital projects; other financing sources

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with no voting rights but with a fixed dividend.

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Dividend Per Share

The portion of a company's earnings allocated to each outstanding share of common stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.