A Debt Service Fund of Clifton Received $100,000 from Its

question 56

Multiple Choice

A debt service fund of Clifton received $100,000 from its general fund during the fiscal year ended June 30,20X9.The cash was used to pay matured interest on Clifton's general obligation bonds,which were issued to finance construction of a new municipal building.On the statement of revenues,expenditures,and changes in fund balance prepared for the debt service fund for the year ended June 30,20X9,the amount received from the general fund should be reported as:

• A)revenue.
• B)a reduction of expenditures.
• C)an other financing source.
• D)matured interest payments.

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Definitions:

Inputs

The resources used in the production process to create goods or services, including labor, raw materials, and capital.

Scale

The size or level of activity of a company or operation, or the capacity to adjust the size or level of activity.

Increasing Returns

A condition in economics when an increase in the scale of production leads to a greater proportional increase in output.

Isoquants

Curves that represent combinations of inputs that produce the same level of output, used in production theory.