A government is required to use a Debt Service Fund in which of the following cases?

Question

Quizplus · Accepted Answer

A Debt Service Fund is specifically used by governments to accumulate resources for paying principal and interest on long-term general government debt that is maturing in future years. This does not typically include capital leases or all general obligation long-term debt indiscriminately, nor is it exclusively for debt refunding, although resources for these purposes might also be managed through such a fund depending on the government's accounting policies and the specific circumstances of the debt.

A Government Is Required to Use a Debt Service Fund