Answered: A debt service fund is used to account…

A debt service fund is used to account for financial resources set aside for the purpose of making principal and interest payments on general long-term debt.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

14
A debt service fund is used to account for financial resources set aside for the purpose of making principal and interest payments on general long-term debt.
True or False
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