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Q1When should a capital projects fund be used by a governmental entity? Is it mandatory that a governmental entity use a capital project fund for GAAP purposes?Q2Class, let’s delve deeper into capital projects funds:what method of accounting do they use?how are bond proceeds recorded in the capital projects fund? (Dr. cash and Cr. ?)how are debt proceeds (other borrowing) recorded in the capital projects fund? (Dr. cash and Cr. ?)are debt proceeds used to pay the principal and interest on debt recorded in a capital project fund or elsewhere?Q3When does GAAP require the use of a debt service fund? Are there instances when a governmental entity is not required to use a debt service fund?Q4Class, why to governmental entities have a debt limit while for profit corporations do not?What is the debt margin and the concept of overlapping debt?How does overlapping debt affect the debt margin?

Q1When should a capital projects fund be used by a governmental entity? Is it mandatory that a governmental entity use a capital project fund for GAAP purposes?Q2Class, let’s delve deeper into capital projects funds:what method of accounting do they use?how are bond proceeds recorded in the capital projects fund? (Dr. cash and Cr. ?)how are debt proceeds (other borrowing) recorded in the capital projects fund? (Dr. cash and Cr. ?)are debt proceeds used to pay the principal and interest on debt recorded in a capital project fund or elsewhere?Q3When does GAAP require the use of a debt service fund? Are there instances when a governmental entity is not required to use a debt service fund?Q4Class, why to governmental entities have a debt limit while for profit corporations do not?What is the debt margin and the concept of overlapping debt?How does overlapping debt affect the debt margin?

Q1When should a capital projects fund be used by a governmental entity? Is it mandatory that a governmental entity use a capital project fund for GAAP purposes?Q2Class, let’s delve deeper into capital projects funds:what method of accounting do they use?how are bond proceeds recorded in the capital projects fund? (Dr. cash and Cr. ?)how are debt proceeds (other borrowing) recorded in the capital projects fund? (Dr. cash and Cr. ?)are debt proceeds used to pay the principal and interest on debt recorded in a capital project fund or elsewhere?Q3When does GAAP require the use of a debt service fund? Are there instances when a governmental entity is not required to use a debt service fund?Q4Class, why to governmental entities have a debt limit while for profit corporations do not?What is the debt margin and the concept of overlapping debt?How does overlapping debt affect the debt margin?

Q1When should a capital projects fund be used by a governmental entity? Is it mandatory that a governmental entity use a capital project fund for GAAP purposes?Q2Class, let’s delve deeper into capital projects funds:what method of accounting do they use?how are bond proceeds recorded in the capital projects fund? (Dr. cash and Cr. ?)how are debt proceeds (other borrowing) recorded in the capital projects fund? (Dr. cash and Cr. ?)are debt proceeds used to pay the principal and interest on debt recorded in a capital project fund or elsewhere?Q3When does GAAP require the use of a debt service fund? Are there instances when a governmental entity is not required to use a debt service fund?Q4Class, why to governmental entities have a debt limit while for profit corporations do not?What is the debt margin and the concept of overlapping debt?How does overlapping debt affect the debt margin?

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