In what circumstances are Debt Service Funds required to be used in governmental accounting?

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Debt Service Funds are required to be used in governmental accounting when a legal requirement dictates that a Debt Service fund be established and when a government is currently accumulating resources for the payment of principal and interest on long-term debt in future years. Governments issue general obligation bonds to raise funds for capital projects and are required to establish a Debt Service Fund to account for the resources accumulated to pay for the principal and interest payments on the bonds.

In What Circumstances Are Debt Service Funds Required to Be