In Addition to Reporting Bonds Payable and Unamortized Bond Premium

question 79

Multiple Choice

In addition to reporting Bonds Payable and unamortized Bond Premium in the government-wide Statement of Net Position, how would the bond sale be reported?

• A) A $4,040,000 other financing source in the capital projects fund, a $40,000 other financing use in the capital projects fund, and a $40,000 other financing source in the debt service fund.
• B) As a $4,000,000 liability in the government-wide Statement of Net Position and as a $4,000,000 other financing source in the debt service fund.
• C) As a $4,040,000 liability in the government-wide Statement of Net Position, as a liability of $ 4,040,000 in the capital projects fund, and as an other financing source of $4,040,000 in the capital projects fund.
• D) The $4,000,000 liability in the government-wide Statement of Net Position and the $40,000 would also be recorded as a bond premium in the Statement of Net Position.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost that was expected or budgeted.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain amount of goods, multiplied by the standard labor rate, indicating efficiency in labor use.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual production volume.

Materials Quantity Variance

A financial measure that captures the difference between the actual amount of materials used in production and the standard amount expected, multiplied by the standard cost of those materials.