Ask Joey ™ a Question

What is the debt service fund under GASB?

The Debt Service fund is set up to account for payment of principal and interest on both short-term and long-term debt for governmental entities.

The debt service fund will account for and report financial resources that are deemed restricted, committed, or assigned to expenditures for principal as well as interest associated with long-term debt.

However, it is critical to note that this will exclude all debt issued to or from any enterprise, internal service, or trust funds. The debt service fund will apply the modified accrual basis of accounting except for interest and principal that is not considered current (until the period in which they must be paid).

You might also be interested in...

  • July 2021 Changes to The CPA Exam: Everything You Need to Know

    Change is right around the corner! The talk of the (CPA) town is that changes are upon us and they are coming quickly. While this is not an overhaul in the way that CPA evolution will be in 2024, there are changes that are being made to all four sections (FAR, REG, AUD, and BEC) […]

  • 2021 AICPA Released Questions

    Buckle up and get ready to crush the CPA exam! The AICPA has released additional multiple choice questions for BEC, AUD, REG, and FAR. We’re beginning to incorporate the questions into the Universal CPA Review platform and we will be uploading videos for certain questions to each of the respective pages below. Creating a high […]

  • AICPA 2021 Released Questions for BEC

    The moment we’ve all been waiting for! Additional question have been released by the AICPA for BEC! The topics are very random, so its a good way to test your understanding if you have been studying. If you haven’t been studying for BEC, it is a great way to see what you will be touching […]