When Taxes Are Levied Specifically for Payment of Interest and Principal

question 104

Multiple Choice

When taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are recognized:

• A) As revenues in the General Fund with transfers made to the debt service funds for payments.
• B) As Other Financing Sources in the debt service fund.
• C) As revenues in the capital projects fund with transfers made to the debt service funds for payments.
• D) As revenues in the debt service fund.