Debt service coverage can only be directly measured from proprietary fund statements.

Question

Quizplus · Accepted Answer

Debt service coverage is a measure of a government's ability to meet its debt obligations. It is calculated by dividing the government's annual debt service payments by its annual operating revenues. Debt service coverage can only be directly measured from proprietary fund statements because proprietary funds are used to account for activities that are similar to those of private businesses.

Debt Service Coverage Can Only Be Directly Measured from Proprietary