A Debt Service Fund Is Used to Account for Financial

question 57

True/False

A debt service fund is used to account for financial resources segregated for the purpose of making principal and interest payments on general long-term debt.

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Definitions:

Alien Corporation

A corporation formed in another country but doing business in the United States.

Domestic Corporation

In a given state, a corporation that is organized under the law of that state.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, and protects them from being personally liable for the company's debts and other obligations.

Corporate Privilege

A legal principle that allows corporations to withhold certain confidential communications from disclosure, often relating to legal advice.