Question

Which of the following is true regarding capital projects funds? Multiple Choice Encumbrances accounting is not normally employed, but Appropriations are recorded. All budgetary accounts are employed and budget to actual statements are prepared. Encumbrances accounting is employed. No budgetary accounts are used.

Answer 1

All budgetary account are employed and budget to actual statement are prepared.

Explanation: Owing to a capital project fund, it is used in governmental accounting to track the financial resources used to acquire and /or construct a major capital assets. Once the assets has been completed, the fund is terminated.