Under the Modified Accrual Basis of Accounting Applicable to Governmental

question 70

True/False

Under the modified accrual basis of accounting applicable to governmental fund types, property tax revenue is accrued and recorded at net realizable value.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Expected Long-Term Rate

An estimate of the rate of return or interest rate over a long-term investment or obligation.

Net Gain Or Loss

The overall financial result after all revenues are added and all expenses are subtracted.

Settlement Or Curtailment

Events that significantly reduce or eliminate the obligations or service period of a pension plan or other long-term benefits, requiring special accounting treatment.