A Deficit Unassigned Fund Balance Was Reported in a City

Multiple Choice

A deficit unassigned fund balance was reported in a city Capital Projects Fund balance sheet. Which of the following explanations for the deficit is not plausible?

A) The city financed a substantial portion of the project in the previous year.
B) The city financed current year expenditures by issuing bond anticipation notes that are not general long-term liabilities.
C) The city entered into a two-year construction contract. Transfers from the General Fund will be made each year to cover actual expenditures.
D) The city had a large assigned fund balance.