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Debt service funds should accrue interest and report principle payments due within the next12 months following year end. True or False

User Bjoernsen
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4 votes

Answer:

false

Step-by-step explanation:

Debt service funds are referred to the funds that do not hold any record for longer-term debt. The longer debt is held in off-book till the time it gets mature. and once the longer debt matured, remaining due portion is now recorded by the Debt service funds. The only purpose Debt service funds are to make the remaining interest payments.

User Masay
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