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The citizens of a specific area of the City of Arlington approved the construction of sidewalks in their residential neighborhood and approved a $1 million bond issue to finance construction of those sidewalks.The citizens agreed to assess themselves for 20 years in an amount sufficient to pay principal and interest on the bonds.The City will oversee the construction of the sidewalks and act as agent for servicing the debt.The City does not guarantee the debt nor does it assume any legal or moral obligation for the bonds.
-When the City collects the special assessment, it should be accounted for in which fund of the City of Arlington?

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The citizens of a specific area of the City of Arlington approved the construction of sidewalks in their residential neighborhood and approved a $1 million bond issue to finance construction of those sidewalks.The citizens agreed to assess themselves for 20 years in an amount sufficient to pay principal and interest on the bonds.The City will oversee the construction of the sidewalks and act as agent for servicing the debt.The City does not guarantee the debt nor does it assume any legal or moral obligation for the bonds.
-When the City collects the special assessment, it should be accounted for in which fund of the City of Arlington?

Quizplus · Accepted Answer

The special assessment should be accounted for in the Special Assessment Fund because it is a fund used to account for the proceeds of special assessments levied against properties that benefit from a specific improvement, such as the construction of sidewalks.

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