Debt Service Funds Should Use the Same Measurement Focus and Basis

question 42

Multiple Choice

Debt service funds should use the same measurement focus and basis of accounting as:

• A) Special revenue funds.
• B) Internal service funds.
• C) Both (a) and (b).
• D) None of the above.

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Definitions:

Accounting Principles

Fundamental concepts that guide the field of accounting, including principles like revenue recognition, matching, and the principle of conservatism.

Critical Thinking

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information.

Problem-Solving

A method or process of resolving issues, challenges, or complexities in a systematic manner.

Evaluating Alternatives

The process of analyzing and comparing different options in decision-making to select the most beneficial or cost-effective option.