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Debt Service Funds Should Accrue Interest and Report Principle Payments

question 41

True/False

Debt service funds should accrue interest and report principle payments due within the next12 months following year end.


Definitions:

Book Value

The net value of a company’s assets as recorded on the balance sheet, calculated as total assets minus liabilities and intangible assets.

Opportunity Cost

The potential benefit that is given up when one alternative is selected over another.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Eliminate

To completely remove or get rid of something.

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