Ask Question
11 September, 15:37

Proceeds of debt issued for the construction or acquisition of capital assets are recognized by the capital projects fund as "other financing sources" and as a liability in the governmental activities journal. A. TRUEB. FALSE

+2
Answers (1)
  1. 11 September, 15:57
    0
    The correct answer is letter "A": True.

    Explanation:

    In governmental accounting, capital project fund is used to record the resources necessary for major capital assets which are those expected to generate value over the long-run such as buildings, machinery, and vehicles. Current liabilities derived from the capital assets are recognized by capital fund but long-term liabilities are recorded in the governmental activities journal.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Proceeds of debt issued for the construction or acquisition of capital assets are recognized by the capital projects fund as "other ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers