A City Borrows $800,000 in January Because It Does Not

question 2

Multiple Choice

A city borrows $800,000 in January because it does not receive property taxes until May.It borrows on a tax anticipation note,which it will repay in May,when the taxes are collected.How would the city classify the note if it were to prepare financial statements on March 31?

• A)as an other financing source
• B)as a liability
• C)as a revenue
• D)as a direct increase in equity

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Definitions:

Marine Systems

Complex ecosystems found in oceans and seas that encompass a diverse range of habitats and life forms.

Integrated Coastal Management

is a process for managing coastal areas to balance environmental, economic, social, cultural, and recreational objectives, all within the limits set by natural dynamics.

Environmental Quality

The state or condition of the environment based on various factors, including pollution levels, cleanliness, and the presence of healthy ecosystems.

Algal Blooms

A rapid increase in the population of algae in water systems, often resulting in water discoloration and depletion of oxygen levels.