Proceeds from general obligation bonds for capital construction should generally be recorded in the
A)Enterprise fund.
B)General Fund.
C)Capital projects funds.
D)Debt service funds.

Question

Quizplus · Accepted Answer

Proceeds from general obligation bonds for capital construction should be recorded in a capital projects fund. Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. The general fund is used to account for the day-to-day operating activities of the government. Enterprise funds are used to account for services that are provided to the public for a fee, such as utilities or airports. Debt service funds are used to account for the repayment of long-term debt.

Proceeds from General Obligation Bonds for Capital Construction Should Generally