Capital projects funds should use the accrual basis of accounting.

Question

Quizplus · Accepted Answer

Capital projects funds should use the modified accrual basis of accounting, which differs from the accrual basis in that it recognizes revenues when they become available and measurable, and recognizes expenditures when the fund liability is incurred. This method provides a basis for measuring net resources available for the acquisition of capital assets and the repayment of debt.

Capital Projects Funds Should Use the Accrual Basis of Accounting