Each of the following are appropriate fund balance classifications for a Debt Service Fund except

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The Debt Service Fund should not have a designated fund balance classification because the purpose of the fund is to account for financial resources used to pay principal and interest on long-term debt. The fund balance should be categorized as either restricted, committed, or assigned. Restricted fund balances are constraints placed by outside parties, such as bond covenants. Committed fund balances are constraints put in place by the government itself, such as a decision to use a specific amount of the balance for debt service. Assigned fund balances represent funds that are intended for specific purposes, but are not legally restricted or committed.

Each of the Following Are Appropriate Fund Balance Classifications for a Debt