Describe the Three Basic Fund Types and Account Groups and Explain

question 45

Essay

Describe the three basic fund types and account groups and explain what changes, if any, the adoption of GASB standard #34 has made on these classifications?

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Definitions:

Compounded Annually

refers to the process where interest earned on an investment is added to the principal sum at the end of each year, with each subsequent interest calculation based on the previous year's total.

Stereo

A system for reproducing sound that uses two or more independent audio channels to create a sense of location and fullness.

Invest

Deploying resources, specifically money, with the target of income or profit realization.

One-time Payment

A single financial transaction, often made for a specific purpose or to settle a liability.