Which of the following statements is not True for debt service funds?
A) Special assessment debt for which the government has some obligation is paid through the debt service fund.
B) Interest payable may be reported as a liability of the debt service fund.
C) Bond principal is shown as a liability of the debt service fund only when that principal is due and payable.
D) All tax-supported bond principal is shown as a liability of the debt service fund.

Question

Quizplus · Accepted Answer

Tax-supported bond principal may be paid from other funds, such as the general fund, and therefore may not always be shown as a liability of the debt service fund.

Which of the Following Statements Is Not True for Debt