Which of the Following Statements Is Not True for Debt

question 18

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 is 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.