The capital projects fund of a government is accounted for using which of the following bases of accounting?
A) Budgetary basis.
B) Cash basis.
C) Modified accrual basis.
D) Accrual basis.

Question

Quizplus · Accepted Answer

Capital projects funds in governmental accounting are accounted for using the modified accrual basis of accounting. This basis recognizes revenues when they become available and measurable and expenditures when the related fund liability is incurred, which is suitable for the nature of capital projects funding and spending.

The Capital Projects Fund of a Government Is Accounted for Using