1. Revenues in a Debt Service Fund are recognized when

1. They are collected in cash.
2. They are measurable and available.
3. They are measurable and earned.
4. Debt service payments are due.

2. Equity in a Debt Service Fund is known as

1. Restricted net position.
2. Fund balance.
3. Net investment in capital assets.
4. Unrestricted net position.

3. What measurement focus does a Debt Service Fund use?

1. Total financial resources.
2. Current financial resources
3. Economic resources
4. Cash resources

4. All of the following statements regarding a Debt Service Fund are true except

1. A Debt Service Fund is rarely used to account for all of a governmental entity's general obligation bond repayments.
2. Debt service on capital lease obligations is generally not accounted for in a Debt Service Fund.
3. A government may have several Debt Service Funds.
4. A government may use one Debt Service Fund to account for multiple general government debt issuances.

5. A government is required to use a Debt Service Fund in which of the following cases?

1. Capital leases.
2. When financial resources are being accumulated for long-term general government principal and interest maturing in future years.
3. Debt refunding.
4. All general obligation long-term debt.