Incurring construction costs on a major general government capital project should require entries in a

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Incurring construction costs on a major general government capital project should require entries in a Capital Projects Fund. This fund is used to account for the financial resources used for the acquisition or construction of major capital facilities such as highways, bridges, buildings, and parks. It is important to separate these capital costs from the day-to-day operating expenses in order to properly track and manage them. The other options (Debt Service Fund, General Long-Term Liabilities account, and Permanent Fund) do not specifically relate to capital projects and would not be appropriate for recording construction costs.

Incurring Construction Costs on a Major General Government Capital Project