Accounting for Governmental & Nonprofit Entities 17th Edition by Jacqueline Reck,Suzanne Lowensohn,Earl Wilson

Exercise 8

Both a capital projects fund general ledger and the governmental activities general ledger at the government-wide level are affected by transactions related to construction of a new capital asset for a government. Describe the major differences in how activities are recorded in the capital projects fund and the governmental activities general ledger. Why do these differences occur?