When accounting for interest expenditures through debt service funds, interest is required to be accrued at year-end.

Question

Quizplus · Accepted Answer

Interest on long term debt is not generally accrued. GASB permits one exception: If a government has resources available for payment in a debt service fund and the period of time until interest or principal payment is due no more than one month, then the interest or principal payment may be accrued.

When Accounting for Interest Expenditures Through Debt Service Funds, Interest