(Use of a Capital Projects Fund)

Tutorville recently hired a new bookkeeper, Pete Pencil, from "Accountants R Us." Pencil was preparing to record some expenditures on a new bridge over False Creek, a local tourist attraction. He noticed that other expenditures on the project were not recorded in the General Fund, which made him curious.

He comes to you, the chief financial officer, for advice. Explain to Pencil why a separate fund is generally used to account for the construction and acquisi-

tion of major general fixed assets.