Which type of funding is NOT applicable for capital projects funds?

Master the Becker CPA FAR Exam with flashcards and multiple choice questions. Each question is accompanied by hints and detailed explanations to aid your study. Get ready to ace your exam!

Operational revenues are not applicable for capital projects funds because these funds are specifically designated for long-term capital improvement projects, such as the construction or acquisition of infrastructure and facilities. Capital projects funds typically rely on funding sources such as general obligation debt proceeds, grants from state sources, and public-private partnership investments, which are intended to finance significant capital expenditures. In contrast, operational revenues pertain to day-to-day revenue generation for governmental operations and are used to support ongoing services rather than to fund long-term capital projects. Thus, while other funding sources align with the objectives of capital projects funds, operational revenues do not serve that purpose.

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