A government typically uses a debt service fund for the repayment of term bonds issued for construction projects, settling long-term claims related to government operations, accumulating resources for zero coupon bonds, covering capital lease payments, and repaying non-guaranteed special assessment debt. Additionally, it can be used for retirement payments related to long-term vacation pay liabilities. These functions ensure the government meets its financial obligations effectively.

1. E8-3 (Use of Debt Service Fund) For which of the following would a government typically use a
Debt Service Fund? Repayment of term bonds issued to finance construction of a general
government office building. Amounts paid to settle long-term claims and judgments liabilities
associated with general government operations. Accumulation of resources to be used to repay
zero coupon bonds issued to finance construction of a courtroom annex. Payments required by
general government capital leases. Repayment of general government special assessment debt
that the government does not guarantee and for which it is not obligated in any other manner.
Payment upon retirement to a general government employee of an amount reported as a long-
term vacation pay liability in the