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Which of the Following Is True for Debt Service Funds

Question 56

Multiple Choice

Which of the following is true for debt service funds?


A) A legally required budget should be recorded in the accounts.
B) A combining balance sheet may not be prepared for a comprehensive annual financial report (CAFR) when more than one debt service fund exists.
C) Encumbrance accounting is often used.
D) GAAP requires that a separate debt service fund be established for each bond issue.

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