Question

The General Fund has transferred cash to the appropriate fund for eventual retirement of term bonds maturing in 10 years. Which funds would record this transaction?

General Fund Capital Projects Fund Debt Service Fund
A)Yes No Yes
B) No No Yes
C)No Yes Yes No
D) Yes Yes Yes
a.Choice D
b.Choice B
c.Choice C
d.Choice A

Answer 1

The General Fund, Capital Projects Fund, and Debt Service Fund would record the transfer of cash for the retirement of term bonds maturing in 10 years.

Step-by-step explanation:

The appropriate funds that would record the transfer of cash for the retirement of term bonds maturing in 10 years are the General Fund, Capital Projects Fund, and Debt Service Fund. The General Fund records the transfer of cash as it provides the initial funding, the Capital Projects Fund records the transfer as it will eventually use the cash to retire the term bonds, and the Debt Service Fund records the transfer as it is responsible for the repayment of the bonds.