Which of the Following Is Not True for Capital Projects

question 21

Multiple Choice

Which of the following is not True for capital projects funds?

• A) Capital projects funds use a Construction Work in Progress account to record costs until the project is completed.
• B) Encumbrance accounting is generally used.
• C) Capital projects funds use the modified accrual basis of accounting.
• D) Capital projects funds have a project-life focus.

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Definitions:

Maker

Maker often refers to an individual or entity responsible for creating or manufacturing something, often within contexts like craftsmanship, invention, or production.

Promising to Pay

A commitment or agreement by an individual or entity to fulfill a financial obligation at a future date.

Interest

The cost of borrowing money or the return that is earned on invested funds, typically expressed as an annual percentage rate.

Using Money

Likely referring to the utilization of financial resources or capital for transactions, investments, or other financial activities.