Debt service funds may accrue interest and report principle payments due if the payments are due within 30 days after year end.

Question

Quizplus · Accepted Answer

According to the generally accepted accounting principles (GAAP), debt service funds should record interest accruals and report principle payments due if the payments are due within 30 days of the end of the fiscal year. This ensures that the financial statements accurately reflect the fund's financial position at the end of the year.

Debt Service Funds May Accrue Interest and Report Principle Payments