Which of the Following Is True

question 51

Multiple Choice

Which of the following is true?

• A) A government is required to record each major general government capital project in a separate Capital Projects Fund.
• B) Acquisition or construction of general government capital assets must always be accounted for through a Capital Projects Fund.
• C) A Capital Projects Fund is not required by GAAP if a general government project is financed by issuing general obligation bonds.
• D) A Capital Projects Fund may be used to acquire vehicles and equipment.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

National Bank

A financial institution chartered by the government of a country, responsible for providing financial services to the government and playing an important role in the country's economy.

Constitutionality

Pertaining to the adherence or conformity to the principles or provisions of a constitution, especially the United States Constitution.