Author Question: If a special tax is levied to finance debt service for a particular debt issue, the entry to record ... (Read 109 times)

V@ndy87 · **on:** Jul 5, 2018

If a special tax is levied to finance debt service for a particular debt issue, the entry to record the levy in the Debt Service Fund would be

A. Debit Taxes Receivable and credit to Revenues.
B. Debit Taxes Receivable and credit to Other Financing Sources.
C. Debit Prepaid Assets and credit to Revenues.
D. Tax levies may not be reported in a Debt Service Fund.

Question 2

The accounting function of classifying is
a. thinking about how events affect the business.
b. gathering similar events to provide information that is easy to understand.
c. sorting and grouping similar items together.
d. deciding the meaning and importance of the information in various reports.