When a Capital Projects Fund Transfers a Premium from the Issuance

question 25

Multiple Choice

When a capital projects fund transfers a premium from the issuance of general obligation bonds to another fund,the transfer should be accounted for as which type of interfund transaction or transfer?

• A)As a loan.
• B)As an interfund transfer.
• C)As revenue.
• D)As a reimbursement.

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Definitions:

Listed Price

The official price of a commodity, security, or asset that is publicly quoted on an exchange.

Futures Contract

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a specified asset at a predetermined future date and price.

Futures Contracts

Agreements to buy or sell an asset at a future date at a price agreed upon today.

Actual Delivery

In finance, refers to the physical delivery of a financial instrument or commodity as opposed to a settlement made in cash or another financial arrangement.