In which fund type is interest on Long Term Debt typically not accrued,yet is recognized as an expenditure in the year in which interest is legally due?

Question

Quizplus · Accepted Answer

Interest on Long Term Debt is typically accounted for in a Debt Service Fund, where it is not accrued, but recognized as an expenditure in the year in which it is legally due. This is because Debt Service Funds account for the repayment of principal and interest on long-term debt, and the accrual of interest could result in double-counting of expenditures.

In Which Fund Type Is Interest on Long Term Debt