After reading chapters 4, 5, 6, 14 and 15. Your responses should be at least 250 to 300 words, but may go longer depending on the topic. If you use any source outside of your own thoughts, you should reference that source. Include solid grammar, punctuation, sentence structure, and spelling.
1. Why are there generally no capital projects (work in progress or other long-lived assets) in governments’ capital projects funds? Why are there generally no long-term debts in debt service funds?
2. How should governments report their capital projects and debt service activities in their government-wide statements?
3. A state incurs interest on funds used while a highway was under construction. How will this interest be accounted for on the state’s (a) capital project’s fund statements and (b) government-wide statements?
4. What is the distinction between general obligation debt and revenue debt? Which one is likely to bear higher interest rates?
Reference Book:
Warren Ruppel, Wiley GAAP for Governments 2013: Interpretation and Application of Generally Accepted Accounting Principles for State and Local Governments 8th Ed.
