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A Debt Service Fund Retires Bond Principal During the Year

Question 23

Multiple Choice

A Debt Service Fund retires bond principal during the year that is not related to a defeasance. The entry necessary to reflect the principal retirement would be


A) Debit bonds payable and credit cash.
B) Debit other financing use and credit cash.
C) Debit expenditures and credit cash.
D) Debit other financing source and credit cash.

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