I’m working on a Accounting question and need guidance to help me study.
1. Capital Projects and Debt Service Funds
Capital Projects Funds and Debt Service Funds are used by governments to account for and report financial resources that are assigned, committed, or restricted to expenditures for capital outlays and expenditures for principal and interest on long-term debt.
How and why do governments use the capital projects fund to account for resources geared towards the acquisition of capital assets?
How and why do governments use the debt service funds to account for resources used towards repayment of debt principal and interest?
2. Capital Assets and Infrastructure
How are general capital assets accounted for in government? What are the more common classifications used for general capital assets?
Infrastructure is a classification of capital assets. Discuss here why and how governments should report infrastructure.
Conduct your research and share here the current state of our nation’s infrastructure. In your opinion, is this an issue of concern relative to the overall health of our nation’s economy? Why or why not?
Can government agencies/entities go bankrupt?
Conduct an internet research and share here a state of local government that declared bankruptcy. (Make sure you share the link here for us to read and critique in responding).
Describe the reasons why this particular entity had to declare bankruptcy.
How long ago has it been since they declared bankruptcy and describe how has the entity improved its operations since?