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.

---

Definitions:

Centralized Tactical Program

A strategy or operation managed from a single, central location or authority, focusing on short-term goals or responses in a specific area such as military, security, or business operations.

Specialized Skill

A specific ability or expertise that is developed through training or experience and is necessary for certain occupations or tasks.

Inimitable Corporate Culture

A unique set of business practices, traditions, and values that cannot be easily replicated by competitors.

Southwest Airlines

An American airline company known for its low-cost travel options and extensive domestic network.