Use of a debt service fund is required.
A) When financial resources are being accumulated for the purpose of paying for capital asset acquisition.
B) When financial resources are being accumulated for the purpose of paying principal and interest when it matures.
C) For all bonded debt service payments.
D) For all debt service payments.

Question

Quizplus · Accepted Answer

Debt service funds are specifically used for accumulating resources to pay principal and interest on long-term debt when it matures, not for the acquisition of capital assets or for all debt service payments.

Use of a Debt Service Fund Is Required