Compensation of a municipal swimming pool is being financed

Compensation of a municipal swimming pool is being financed through a bond issue. The bonds will be repaid by admission and general fund appropriations. What is the primary fund to be used to account for the initial financing and construction.

A. Enterprise fund
B. Debt service fund
C. Capital Project fund
D. Special assessment fund

Solution

ans) Option (C) capital project fund

The primary fund to be used to account for the initial financing and construction is capital project fund