Discuss the purpose of the capital projects fund, debt service fund, and permanent fund. Describe the difference between government-wide financial statements and fund-basis financial statements.Why is it necessary for the federal government accounting standards to differ from state and local governments accounting standards?

Financial Statement - Financial statements are documents that describe a company's operations and financial performance. Government entities, accounting companies, and other organizations frequently audit financial accounts to assure their accuracy and for tax, financing, or investment purposes.Fund-based financial statements differ from government-wide financial statements in that they track the accumulation and use of resources for the construction, acquisition, and rehabilitation of capital assets such as buildings and roads and debt service and permanent funds, which are restricted to being invested to generate income but cannot be spent. Capital project funds and debt service funds are examples of capital assets. Debt service funds are used to account for the repayment of debt.A summary of all government funds and accounts is included in government-wide financial statements.Each expense made by the government is broken down in this statement, along with the remaining funds. The fund-based financial statements display the financial statement for a particular fund. The financial statements are prepared for 3 common funds. Governmental, proprietary, and fiduciary funds make up these funds. Additional accounting rules that go beyond those outlined in the codification of accounting standards may be applicable to the accounting of government entities including federal, state, and municipal government agencies. The Governmental Accounting Requirements Board has issued additional standards for state and local governments ("GASB"). The Federal Accounting Standards Advisor Board has issued further standards for the federal government ("FASAB").