ACCOUNTING FOR GOVERNMENTAL & NONPROFIT
ACCOUNTING FOR GOVERNMENTAL & NONPROFIT
18th Edition
ISBN: 9781260588583
Author: RECK
Publisher: MCG
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Chapter 5, Problem 17.4EP

A capital projects fund would probably not be used for which of the following assets?

  1. a.      Construction and installation of new shelving in the mayor’s office.
  2. b.      Financing and construction of three new fire substations.
  3. c.       Purchase and installation of an entity-wide integrated computer system (such as SAP).
  4. d.      Replacing a bridge.
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River City needs to raise money to build a bridge. Designing the bridge and constructing it will require a long-term investment of funds. What source of financing would be representative of such a long-term funding requirement?   Multiple Choice   commercial paper   issuance of bonds   line of credit   factoring
Incurring construction costs on a major general government capital project would .a Increase capital assets in the General .Fund .b Increase capital assets in a Capital .Projects Fund .C Decrease cash in the General Capital .Assets accounts .d Decrease fund balance in a Capital .Projects Fund
The Dudumwezi city Council is a considering the introduction of speed trains in order to deal with the problem of traffic congestion in the city. The project will be implemented through the PPP model. Councilors are skeptical about the financial viability of the project and have asked for a financial viability assessment of the project. To this end the council management has engaged a consultant to carry out this assessment. Required:To aid the Councilor’s, explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows.
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