Multiple Choice
Which of the following is not usually a requirement of a Debt Service Fund (DSF) for a term bond issue?
A) The DSF should be used to accumulate the necessary funds to pay the term bonds when they come due.
B) The DSF makes periodic interest payment on the debt during its life.
C) The DSF will have funded reserves as required by the debt covenant.
D) A DSF that services a term bond issue is used to account for principal retirement only, with interest expenditures made directly from the General Fund.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: All of the following statements regarding a
Q10: If General Fund cash is transferred to
Q11: Debt Service Fund expenditures would include all
Q12: If a special tax is levied to
Q13: Debt service expenditures on general long-term debt
Q15: Assume that a county with a June
Q16: Equity in a Debt Service Fund is
Q17: Assume that the fair market value of
Q18: Which of the following financial statements is
Q19: A government retired $5,000,000 of outstanding general