It is not possible for expenditures of a Debt Service Fund to exceed revenues in a particular year.

Question

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Transfers from other funds (often the General Fund) are a major source of resources for the Debt Service Fund. Transfers in from other funds are accounted for as other financing sources instead of revenues. Therefore, expenditures often exceed the revenues of a Debt Service Fund for a particular year. Also, a Debt Service Fund may have beginning fund balance, which can be used for expenditures during the year.

It Is Not Possible for Expenditures of a Debt Service