It is not possible for expenditures of the Capital Projects Fund ...

[shofmannx20]

It is not possible for expenditures of the Capital Projects Fund to exceed revenues in a particular year.
 
  Indicate whether the statement is true or false

Question 2

To close the drawing account with a debit balance, credit the account for its balance and debit the owner's capital account.
 a. True
   b. False
   Indicate whether the statement is true or false

[kxciann]

Answer to Question 1

False. Proceeds from bonds are a significant source of Capital Projects Fund resources. These resources are classified as other financing sources, not revenues. Therefore, the expenditures of Capital Projects Funds will often exceed the revenues. Also, Capital Projects Funds may have beginning fund balance, which can be used for expenditures during the year.

Answer to Question 2

True

[shofmannx20]

Wow, this really help

[shailee]

Thanks for the timely response, appreciate it