Question

The funding sources for a Capital Projects Fund include proceeds of a general obligation bond issuance and a capital grant from the State Highway Trust. Assuming there are no other funding sources and expenditures have not exceeded such resources, the ending fund balance should be reported as:_______

a. non-spendable.
b. restricted.
c. committed.
d. assigned.

Answer 1

Answer:

b. restricted.

Explanation:

As we know that for the capital projects fund, the funding sources involve the proceeds with respect to the issuance of the particular liability bond also a capital grant from the trust of state highway

So here the ending fund balance would be reported as a restricted and the same is to be considered

Hence, the option b is correct