The debt service activity of a government may be properly accounted for within the General Fund unless law mandates the use of a debt service fund.

Question

Quizplus · Accepted Answer

Only those funds required by law or by sound financial management are needed. Bond covenants or ordinances are usually interpreted, however, as requiring the use of a debt service fund, and it generally is good financial management to report assets held for debt service separately from assets available for salaries, etc.

The Debt Service Activity of a Government May Be Properly