Assume that a Debt Service Fund does not have nonspendable fund balance. Further assume that after restricted and committed levels of fund balance have properly identified, the remaining balance is a deficit. This deficit fund balance should

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A deficit fund balance represents a negative fund balance, which would be reported as a negative unassigned fund balance in a Debt Service Fund. Nonspendable balance includes items such as inventory or prepaid items, and therefore would not apply in this situation. Netting the deficit against the positive committed fund balance would not be appropriate because committed fund balance has already been separately identified and should not be reduced by deficits.

Assume That a Debt Service Fund Does Not Have Nonspendable