Choice "C" is correct. An agency fund is custodial in nature. Transactions for which the governmental unit has no direct responsibility but simply is acting as an agent for a third party are recorded in the agency fund.Choice "a" is incorrect. The enterprise fund is a proprietary fund and would not record debt service transactions for a special assessment bond issue.Choice "d" is incorrect. The special revenue fund is a governmental fund in which no debt or debt service transactions are reported.Choice "b" is incorrect. The general long-term debt account group accounts for unmatured principal of general (not proprietary or trust) debt.