Final answer:
The construction of new sand volleyball courts should be accounted for using a Capital Projects Fund, as it is intended for major capital expenses for public benefit. This fund is distinct from the General, Special Revenue, and Enterprise Funds, which have different purposes. Option A is correct answer.
Step-by-step explanation:
The Capital Projects Fund is the correct fund to use for accounting for the construction of new sand volleyball courts as mentioned in the situation. When a government or municipality undertakes a project for the construction of major capital facilities, a Capital Projects Fund is typically used. This type of fund is intended for financial resources that are used for the acquisition or construction of major capital facilities other than those financed by proprietary funds or for assets that will benefit the public.
Contrastingly, the General Fund is used to account for all financial resources except those required to be accounted for in another fund. It mainly supports the general operations of a municipality. The Special Revenue Fund is used when the proceeds are derived from specific revenue sources that are legally restricted to expenditure for specific purposes. However, the fund from Rebecca Smith's gift, while it is specifically intended for public use, is marked for a capital expense, rather than a revenue-generating activity. The Enterprise Fund would be appropriate for services provided for a fee that are intended to be self-supporting, such as utilities or airports, which is not the case here.
Given these fund definitions, it's clear that a Capital Projects Fund is the appropriate choice for the construction of new sand volleyball courts. This is because it is a major capital expense intended for public benefit and fits the aims of capital project funding.
The final answer is option a. Capital Projects Fund.