Which of the following accounts would you least expect to see in a debt service fund?
A) Principal payments.
B) Interest charges.
C) Interest earned.
D) Outstanding balance of the debt being serviced.

Question

Which of the following accounts would you least expect to see in a debt service fund? 
A) Principal payments.
B) Interest charges.
C) Interest earned.
D) Outstanding balance of the debt being serviced.

Quizplus · Accepted Answer

Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. They do not track the outstanding balance of the debt being serviced; this is typically recorded in the government-wide financial statements or in the notes to the financial statements.

Which of the Following Accounts Would You Least Expect to See