With Respect to Debt Service Funds, Which of the Following

question 3

Multiple Choice

With respect to Debt Service Funds, which of the following is true?

• A) Payments under capital lease obligations may be reported in debt service funds
• B) Debt service funds use accrual accounting
• C) Each separate long-term obligation must be accounted for in a separate debt service fund
• D) All of the above are true

---

Definitions:

Constructive Trust

An equitable remedy imposed by a court to prevent unjust enrichment, treating the holder of property as if they were a trustee of it for the benefit of another.

Lakeside Lot

A piece of land located adjacent to, or in close proximity to, a lake.

Possession

The act of having control over something or owning something, either physically or legally.

Agent's Compensation

The payment or reward given to an agent for services performed as outlined in the agency agreement between the agent and the principal.