On the statement of revenues,expenditures,and changes in fund balance prepared for a debt service fund,the cash paid to retire matured serial bonds is reported as:
I.expenditures.
II.a direct deduction from unreserved fund balance.

Question

Quizplus · Accepted Answer

The cash paid to retire matured serial bonds is reported as an expenditure on the statement of revenues, expenditures, and changes in fund balance prepared for a debt service fund because it represents a use of financial resources to cover the principal and interest payments due on those bonds. It is not reported as a direct deduction from unreserved fund balance because it is not a case of transferring funds between accounts or allocating resources to specific uses.

On the Statement of Revenues,expenditures,and Changes in Fund Balance Prepared