If all asset, liability, and fund equity accounts of a capital projects fund were closed during a certain fiscal year, it is unnecessary to prepare any financial statements for that fund for that year.

Question

Quizplus · Accepted Answer

Even if all accounts of a capital projects fund were closed during a certain fiscal year, it is still necessary to prepare financial statements for that fund for that year as required by Generally Accepted Accounting Principles (GAAP). These financial statements would include a statement of revenues, expenditures, and changes in fund balance for the capital projects fund.

If All Asset, Liability, and Fund Equity Accounts of a Capital