Which of the Following Statements Is Not True for Debt

question 62

Multiple Choice

Which of the following statements is not True for debt service funds?

• A) Special assessment debt for which the government has some obligation is paid through the debt service fund.
• B) Interest payable may be reported as a liability of the debt service fund.
• C) Bond principal is shown as a liability of the debt service fund only when that principal is due and payable.
• D) All tax-supported bond principal is shown as a liability of the debt service fund.

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Definitions:

Igneous Feature

A geological formation or structure that has been created through the cooling and solidification of magma or lava.

Laccolith

A geological formation resulting from magma pushing up between layers of rock, creating a lens-shaped mass.

Columnar Joints

Natural formations of rock into long, regular columns, typically found in basalt flows, resulting from the cooling and contraction of lava.

Igneous Rock

Rock formed through the cooling and solidification of magma or lava, categorized into intrusive or extrusive depending on the environment of formation.