Ashley Woods Village paid $1,000,000 principal and $200,000 interest on its general obligation bonds that it issued in a prior year to finance widening of a local thoroughfare. This transaction will most likely

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Quizplus · Accepted Answer

The correct answer is D because the payment of both principal ($1,000,000) and interest ($200,000) on general obligation bonds would typically be made from the Debt Service Fund, and the total payment of $1,200,000 would decrease the fund balance in that fund.

Ashley Woods Village Paid $1,000,000 Principal and $200,000 Interest on Its