Proposition 98 Guaranteed That the Public Schools in California Would

question 3

Multiple Choice

Proposition 98 guaranteed that the public schools in California would

• A) be rebuilt after 35 years of use.
• B) receive at least 40 percent of the general fund each fiscal year.
• C) receive a 20 percent increase in personnel.
• D) have all maintenance deferred for at least 10 years.

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Definitions:

Unrealized Profit

Profits that have been earned but not yet realized through a transaction, often related to investments that have increased in value but have not been sold.

Consolidation Purposes

The process of combining financial statements of separate business entities within a group for reporting as one entity.

Unrelated Party

A party or entity that does not have a familial, business, or financial relationship with another party, ensuring transactions are conducted at arm's length.

Straight-Line Method

A method of calculating depreciation of an asset whereby the cost is evenly distributed over its useful life, resulting in a constant annual depreciation expense.