5 Why are there generally no capital projects work in progre

5. Why are there generally no capital projects (work in progress or other long-lived assets) in government’ capital project funds? Why are there generally no long term debts in debt services funds?

Solution

Yes, it is true that there are generally no capital projects in governments’ capital projects funds and also there is no long term debts in debt service funds because these are maintained & kept to account for resources used to construct capital assets & for paying long term debt. And we know that these funds are kept separated from other resources due to specified purpose of use or these are used for specific purposes. That is why there generally no capital projects (work in progress or other long-lived assets) in government’ capital project funds or there generally no long term debts in debt services funds.