In 20X6,Dorian City Received $15,000,000 of Bond Proceeds to Be

question 58

Multiple Choice

In 20X6,Dorian City received $15,000,000 of bond proceeds to be used for capital projects.Of this amount,$3,000,000 was expended in 20X6.Expenditures for the $12,000,000 balance were expected to be incurred in 20X7.These bond proceeds should be recorded in capital projects funds for:

• A)$3,000,000 in 20X6 and $12,000,000 in 20X7.
• B)$3,000,000 in 20X6 and in the general fund for $12,000,000 in 20X6.
• C)$15,000,000 in 20X6.
• D)$15,000,000 in 20X7.

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Definitions:

Debt-Equity Ratio

A metric that highlights the use of equity versus debt in the strategic funding of company assets.

Dividend Payout Ratio

A financial ratio that measures the proportion of earnings a company pays out to its shareholders in the form of dividends.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company's total net income.