The primary function of debt service funds is to account for financial resources accumulated to cover the payment of principal and interest on general government obligations.

Question

Quizplus · Accepted Answer

This statement is true. Debt service funds are established to account for the resources set aside for the payment of principal and interest on government loans and other obligations. They ensure that these payments are made timely and efficiently, and that the government does not default on its debt obligations.

The Primary Function of Debt Service Funds Is to Account