Which of the Following Is True for Debt Service Funds

question 63

Multiple Choice

Which of the following is true for debt service funds?

• A) A legally required budget should be recorded in the accounts.
• B) A combining balance sheet may not be prepared for a comprehensive annual financial report (CAFR)when more than one debt service fund exists.
• C) Encumbrance accounting is often used.
• D) GAAP requires that a separate debt service fund be established for each bond issue.

---

Definitions:

Obsessive-Compulsive Disorder

A mental health disorder characterized by unreasonable thoughts and fears (obsessions) leading to compulsive behaviors.

Doubts

Feelings of uncertainty or lack of conviction about something, leading to questions or hesitations in belief or action.

Repetitive Routines

Behaviors or tasks that are performed in a consistent, unvarying manner, often as part of a daily or regular schedule.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that is strongly avoided.