Debt Service Funds Are Used to Record

question 55

Multiple Choice

Debt service funds are used to record

• A) Both principal and interest payments of debt issues.
• B) Only interest payments on debt issues.
• C) Only principal payments of debt issues.
• D) Neither principal nor interest payments of debt issues.

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Definitions:

Subsidies

Financial support or incentives provided by the government to businesses, industries, or individuals, aimed at reducing the cost of services or commodities, or supporting economic activities.

Majority Rule

A decision-making principle where the options receiving more than half of the votes are chosen or implemented.

Elected Officials

Individuals who have been chosen through a democratic voting process to hold public office and make governmental decisions.

Political Support

Political Support encompasses the backing or endorsement by individuals, groups, or entities for political parties, policies, or candidates.