Which of the Following Statements Regarding Debt Service Funds Is

question 59

Multiple Choice

Which of the following statements regarding debt service funds is True?

• A) Given the size and relevance of general long-term liabilities, debt service funds are always reported as major funds.
• B) GASB standards require a separate debt service fund to be established for each issuance of tax-supported or special assessment debt.
• C) A debt service fund is used only for debt service activities related to general long-term liabilities.
• D) By law debt service funds are required to use encumbrance accounting.

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