Multiple Choice
Previously Atomic City had issued bonds with a face value of $10 million to construct a new city hall.Because the money will not be needed for several months, the city invested the bond proceeds in U.S.Government securities.Assume that the city maintains its books and records in a manner that facilitates the preparation of fund financial statements.What is the appropriate entry when the city receives interest on the investments?
A) Debit Cash; Credit Revenue.
B) Debit Cash; Credit Other financing sources.
C) Debit Cash; Credit Deferred inflow of resources.
D) No entry required.
Correct Answer:
Verified
Correct Answer:
Verified
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