A City issued bonds for the purpose of financing a major capital improvement.Which fund is the most appropriate fund in which to record the receipt of the bond proceeds?

Question

Quizplus · Accepted Answer

Bond proceeds received for the purpose of financing a major capital improvement are generally recorded in a Capital Projects Fund. This fund is specifically created to account for resources that are restricted, committed, or assigned to expenditure for capital projects. The funds received from the bond issue can then be used to finance the capital improvement project.

A City Issued Bonds for the Purpose of Financing a Major