A debt service fund is a type of governmental fund that is used to account for revenues and other financing sources that are intended to pay for the principal and interest on long-term debt. It is not created to raise funding for a specific capital project or considered a proprietary fund. It is also not a fiduciary fund as it does not hold resources in a trust capacity for others.

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A Debt Service Fund

Question 148

Multiple Choice

A debt service fund:

A) Is primarily created to raise funding for a capital project.
B) Is a proprietary fund.
C) Is used to account for revenues and other financing sources that are intended for payments on long-term debt.
D) Is a type of fiduciary fund.

Correct Answer: