A city adds a new door to its downtown fire station. This is considered a relatively minor addition. Which fund would most likely be used to account for the construction expenditures associated with the door?

Question

Quizplus · Accepted Answer

The General Fund is used for day-to-day operating expenses, including minor capital additions such as a new door for the fire station. The Enterprise Fund is used for self-supporting activities, such as a water or sewer utility. The Capital Projects Fund is used for major capital expenditures, such as building a new fire station. The General Capital Assets account is used to track all capital assets owned by the government, but is not a fund used for accounting purposes.

A City Adds a New Door to Its Downtown Fire