Farley College budgets funds for the maintenance and repair of its buildings.Where would these funds be accounted for?

Question

Farley College budgets funds for the maintenance and repair of its buildings.Where would these funds be accounted for?​

Quizplus · Accepted Answer

Funds for maintenance and repair of buildings are typically accounted for under the Renewal and Replacement category, which is used to finance major repairs, replacements, and improvements to existing facilities. This category is part of the overall Plant Fund, which encompasses all capital assets owned by an organization, including land, buildings, and equipment. The Unexpended Plant Fund is used to account for resources that have been set aside for future construction or acquisition of new assets. Retirement of Indebtedness and Investment in Plant are not relevant in this context.

Farley College Budgets Funds for the Maintenance and Repair of Its