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Rainbow [258]
3 years ago
12

Which of the following is correct with respect to Debt Service Funds?

Business
2 answers:
BigorU [14]3 years ago
7 0

Answer:

C. Debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

Explanation:

Under the Codification of Governmental Accounting and Financial Reporting Standards by the Governmental Accounting Standards Board (GASB); Code 200 states that debt service funds are to be used to service terms and bond reserves, guaranty, warrants, note, capital leases, or sinking funds.

Debt service funds is a cash reserve that is used to account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

The purpose of using a debt service fund is to reduce the risk of a debt security for investors, thereby making it more attractive and appealing to them. Also, the debt service fund helps to mitigate the effective interest rate needed by the government to sell the offering.

The other types of governmental funds are namely;

- Capital projects funds.

- Permanent funds.

- General funds.

- Special revenue funds.

Verizon [17]3 years ago
5 0

Answer:

C. Debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

Explanation:

Debt service funds are used to pay for principal and interest on certain types of debts. This reduced the risk of debt security that investors face and also reduces the effective rate at which the offering can be sold.

However debt service funds cannot be used for proprietary funds like 400 and 500.

Instead we use Enterprise funds for 400. That is operations similar to corporate enterprise. For example water and sewage utilities.

Internal service funds for 500 used by other funds or departments bin a government in a cost reimbursement basis. For example a food supplier that takes orders and is reimbursed for each order.

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Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information:
Ilia_Sergeevich [38]

Answer:

141 Units

Explanation:

please see attachment

4 0
2 years ago
Beginning work in process was $125,000. Manufacturing costs added to production for the month were $835,000. There were $200,000
Nataly_w [17]

Answer:

c. $ 760,000

Explanation:

For computing the cost of goods manufactured, we have to use the formula which is shown below:

Cost of goods manufactured= Beginning work in process + manufacturing cost - ending work in process

= $125,000 + $835,000 - $200,000

= $760,000

Beginning work in process + manufacturing cost is called total work in process for a given period

7 0
3 years ago
Rundles, Kreiger, and Larson formed a partnership to breed and show horses. Rundles and Kreiger each contributed $25,000 to the
earnstyle [38]

Answer:

Judgment will be for Larson. Although a decision by the majority of the partners in a partnership will control in matters concerning the ordinary operations of the firm business, such a decision is not binding if it contravenes the partnership agreement. In this case, the agreement provided that the partners would share profits equally. The decision by Rundles and Kreiger is therefore not effective, since is not based on the unanimous consent of all partners.

8 0
2 years ago
The means of production consists of __________. Question 3 options: tools, factories, land, and investment capital class conscio
siniylev [52]

Answer:

tools, factories, land, and investment capital

Explanation:

The means of production consists of <u>tools, factories, land, and investment capital</u>

5 0
2 years ago
Doisneau 16​-year bonds have an annual coupon interest of 9 ​percent, make interest payments on a semiannual​ basis, and have a
kenny6666 [7]

Answer:

discount bond.

Explanation:

A premium bond is one whose price is above its par value, while a discount bond is one whose price is below its par value. Therefore, to find the answer, we need to find the price of the bond.

To find the price of the bond, we use the formula attached in this answer.

In the formula, YTM = Yield to Maturity, C = Value of the Coupon payment, P = par value of the bond, and n = number of periods till matirity.

We have this information.

YTM = 16%

P = 1,000

The number of periods n = 32 because it is a 16-year bond that pays a semiannual coupon, so 16*2 = 32

Finally, the coupon payment is 45 because the coupon rate is 9%, and the coupon is paid semiannually, so the formula is 9%*1,000 / 2.

Plugging the amounts into the formula we obtain the following answer:

Price of the bond = 287.5

Because the price of the bond is so much lower than its par value, the bond is a discount bond.

7 0
2 years ago
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