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Governmental Accounting and Large Building Projects

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An important aspect of governmental accounting is how large projects such as buildings, infrastructure (roads, airports, sidewalks, etc.), and large equipment is purchased and built. Use the following reference: A Place Called Home (http://www.apch.org/).

Identify the capital projects funds and discuss why these funds were created.
Find a debt service fund and discuss how is this fund being used.
What is inter-period equity?
How does inter-period equity affect capital project and debt services funds?

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This solution discusses governmental accounting and large building projects.

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An example of capital projects funds for A Place Called Home (APCH) is the educational services facility construction. This capital project is established to earmark revenues to be used for the construction and major repair of educational services facilities such as classrooms and libraries.

APCH has no debt service fund. However, debt ...

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