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If Bonds Issued to Fund a Capital Project Are Sold

Question 114

Multiple Choice

If bonds issued to fund a capital project are sold at a premium, the additional money received is:


A) Recorded as Other Financing Sources - Premium on Bonds in the capital projects fund.
B) Transferred from the capital projects fund to the debt service fund.
C) Transferred from the capital projects fund to the General Fund.
D) Both A and B are correct.

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