A government was billed $3,000,000 during the year on its capital project, of which $2,700,000 was paid. The total contracted cost is $5,200,000. The government does not plan to pay the $300,000 balance currently owed to the contractor until the project has been completed and approved. The government should report Capital Projects Fund expenditures for the current year equal to

Question

Quizplus · Accepted Answer

The government should report expenditures based on the amount billed, not the amount paid. Therefore, the expenditures for the current year should be $3,000,000.

A Government Was Billed $3,000,000 During the Year on Its