As a general rule, debt service expenditures in a Debt Service Fund are recognized

a. when the debt service payment is due.

b. resources to be used for the repayment are made available to a Debt Service Fund.

c. when due for principal repayments but on an accrual basis for interest.

d. in accordance with the requirements of the original bond order that specifies the basis of expenditure recognition.

5. What are the characteristics of a term bond?

a. Term bonds may not exceed 15 years.

b. Principal and interest on the entire principal are paid throughout the life of the issue.

c. Interest is paid on the entire principal throughout the life of the issue.

d. Principal is paid at the end of the bond issue term.

c. Items a and b only.

f. Items c and d only.