1. Which of the following transactions would not be reported as expenditures in a Debt Service Fund?

1. Issuance costs incurred in a refunding bond issuance.
2. Payments to escrow agents with resources transferred from the General Fund.
3. Arbitrage rebate.
4. Repayment of BANs issued to finance a capital project.

2. Which of the following types of transactions would not potentially be reported as expenditures in a Debt Service Fund?

1. Retirement of long-term debt principal.
2. Interest on long-term debt.
3. Discounts on refunding debt.
4. Bond issuance costs.

3. Debt Service Fund expenditures reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance commonly exclude

1. Fiscal agent fees.
2. Interest expenditures.
3. Principal retirement expenditures.
4. Gains and losses on early retirement of debt.

4. Principal and interest expenditures on general long-term debt should be recognized in the period

1. That the costs are incurred.
2. Prior to the year in which they are due, i.e., when they become short-term debt.
3. That they are legally due and payable.
4. That they are paid.

5. Debt service expenditures on general long-term debt principal should be recognized in the period that the liability:

1. accrues, if paid.
2. accrues, whether or not paid.
3. is legally due, if paid.
4. is legally due, whether or not paid.