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When Taxes Are Levied Specifically for Payment of Interest and Principal

Question 77

Multiple Choice

When taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are recognized:


A) As revenues in the General Fund with transfers made to the debt service funds for payments.
B) As Other Financing Sources in the debt service fund.
C) As revenues in the capital projects fund with transfers made to the debt service funds for payments.
D) As revenues in the debt service fund.

Correct Answer:

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