Debt Service Coverage Can Only Be Directly Measured from Proprietary

question 98

True/False

Debt service coverage can only be directly measured from proprietary fund statements.

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Definitions:

Sick Pay

Compensation paid to employees when they are unable to work due to illness.

Child Support Payments

Payments made by a non-custodial parent to support their child or children; these are not tax-deductible.

Original Issue Discount

The difference between the par value (or face value) of a bond and the lower price at which it is originally sold, which effectively represents interest paid to the bondholder.

Interest Income

Income earned from the lending of funds or depositing money in interest-bearing accounts.