A City Received a Grant of $5,000,000 from a Private

question 27

Multiple Choice

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the Fund Financial Statements?

• A) the General Fund.
• B) an Expendable Trust Fund.
• C) a Capital Projects Fund.
• D) an Agency Fund.
• E) a Permanent Fund.

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Definitions:

Loan Repay

Loan repayment is the act of paying back borrowed funds to the lender, typically in installments that include both principal and interest.

Notes Payable

Financial obligations represented by written promissory notes requiring the borrower to repay the amount borrowed plus interest.

Accounts Payable

Liabilities or money owed by a business to its creditors or suppliers for goods and services received.

Non-interest Bearing

Refers to debt or a financial instrument that does not accrue interest over time, meaning the borrower only repays the principal amount.