Which of the following statements regarding debt service funds is true?
a. Given the size and relevance of general long-term liabilities, debt service funds are always reported as major funds.
b. GASB standards require a separate debt service fund to be established for each issuance of tax-supported or special assessment debt.
c. A debt service fund is used only for debt service activities related to general long-term liabilities.
d. Annual budgets must be prepared for debt service funds and reported in the statement of revenues, expenditures, and changes in fund balances - budget and actual.
Answer: c. A debt service fund is used only for debt service activities related to general long-term liabilities.