Arlington Has a Debt Service Fund Which It Uses to Pay

question 36

Multiple Choice

Arlington has a debt service fund which it uses to pay the principal and interest on its $2,000,000 of general long-term debt.Interest at 5 percent is due on October 1 and April 1.On October 1,2008,and April 1,2009,Arlington's debt service fund paid $50,000 of interest due on its bonds.On the balance sheet prepared on June 30,2009,for Arlington's debt service fund,interest payable should be reported at:

• A)$0.
• B)$16,667.
• C)$25,000
• D)$50,000.

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Definitions:

Sample Proportion

The fraction or percentage of the sample that displays a certain trait or characteristic, used as an estimate of the proportion in the entire population.

Logistic Regression

A statistical model that estimates the probability of a binary outcome based on one or more predictor variables, using a logistic function.

Indicator Variable

A variable used in statistical modeling and analysis that takes on a value of 0 or 1 to indicate the absence or presence of a certain condition or effect.

Natural Logarithm

The logarithm to the base e (where e is approximately equal to 2.718281828), often used in mathematics and engineering.