Question

The receipts of a tax levy to retire principal and pay interest on General government financial resources that are required to be used to pay teacher salaries for a special education program are typically accounted for in a:

a. Capital Projects Fund.
b. Debt Service Fund.
c. Permanent Fund.
d. Special Revenue Fund.

Answer 1

Answer:

The correct answer is letter "B": Debt Service Fund.

Explanation:

Debt Service Funds (DSF) are governmental reserves destined to the payment of the principal and interest of determined debts. These debts represent long-term liabilities. The resources from where funds come are taxes levied by the DSF or transferred from general funds to the DSF.