A Capital Projects Fund Might Be Used to Record Which

question 5

Multiple Choice

A capital projects fund might be used to record which of the following activities?

• A) Building an addition to the city hall building.
• B) Maintaining roads and bridges.
• C) Operating a municipal golf course.
• D) Paying the principal and interest on debt incurred to build a municipal swimming pool.

---

Definitions:

Financial Intermediaries

Institutions that act as a middleman between savers and borrowers, including banks, investment funds, and insurance companies.

Budget Deficit

The situation where a government's expenditures exceed its revenues over a specific period of time, leading to a need for borrowing or spending cuts.

Budget Surplus

The situation in which a government's revenues exceed its expenditures during a given period, indicating financial health.

Public Saving

The portion of national saving that is accumulated by the government sector, often reflected as the difference between government revenues and expenditures.