1. What criteria must be met before revenues can be recognized on a modified accrual basis? What is the rationale for these criteria? How is the different than for-profit?
2. What is the distinction between expenditures and expenses as the terms are used in governmental accounting? How would you explain this concept in your own words?
3. What are some of the characteristics of capital project funds and debt service funds?

capital projects funds account for construction expenditures, not for the assets that are being constructed. So what will be my journal entries if:

1. "The city approving (and gives accounting recognition to) the project's budget of $8,643,000 of which $5,616,000 is to be funded by general obligation bonds, $2,650,000 from the state, and the remaining $377,000 from the general fund. The city estimates that construction costs will be $8,550,000 and bond issue costs $93,000."