Which of the following statements about capital projects funds is true?
A)The assets of a capital projects fund include both financial and capital assets
B)All fixed assets acquired by a government are paid for from a capital projects fund
C)A capital projects fund accounts for resources that are restricted or otherwise limited to spending for capital outlays
D)When capital assets are financed through the issuance of long-term debt,that long-term debt is accounted for in a capital projects fund.

Question

Quizplus · Accepted Answer

A capital projects fund is established to account for financial resources that are restricted or otherwise limited to spending for capital outlays. This fund is used to account for the acquisition or construction of major capital facilities and improvements, such as buildings, land, and equipment. It is not necessary that all fixed assets are paid for from a capital projects fund, and long-term debt financing may or may not be accounted for in a capital projects fund, depending on the specific circumstances.

Which of the Following Statements About Capital Projects Funds Is