Which statement is true concerning payment of principal and interest on general obligation debt?

Select one:

a. Amounts accumulated for future payment of principal and interest are reported in a debt service fund.

b. Amounts accumulated for future payment of principal are reported in a debt service fund, while amounts accumulated for future payment of interest are reported in the general fund.

c. Amounts accumulated for future payment of principal are reported in a permanent fund, while amounts accumulated for future payment of interest are reported in a debt service fund.

d. Amounts accumulated for future payment of principal and interest are reported in a custodial fund.