Which of the following is correct with respect to Debt Service Funds?

Multiple Choice

Debt service funds must accrue interest on long$-$term debt at year end.

Debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for all governmental long$-$term debt.

Debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

Debt service funds report the balance of governmental debts except debt of proprietary and fiduciary funds.