Which basic financial statements can contain a column for debt service funds?

• A. Statement of revenues, expenditures, and changes in fund balances-governmental funds.
• B. Balance sheet.
• C. Statement of cash flows.
• D. Statement of net position.

Answer: (A)

Debt service funds are a type of governmental fund, and the fund-by-fund presentation is a defining feature of the governmental fund financial statements. The statement of revenues, expenditures, and changes in fund balances for governmental funds is the primary place where a separate column can appear for a debt service fund, showing that fund’s specific inflows, outflows, and changes in its fund balance for the period. Government-wide statements do not present funds separately; they aggregate by functions and activities rather than by individual funds. The balance sheet for governmental funds also presents assets, liabilities, and fund balances by fund, but the key place that clearly isolates the debt service fund’s activity is the statement of revenues, expenditures, and changes in fund balances for governmental funds.