Some Governments Choose to Sell the Collection Rights to Unpaid

question 29

True/False

Some governments choose to sell the collection rights to unpaid property taxes in tax lien public auctions and therefore will not have property tax balances reported within the financial statements.

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Definitions:

Compounded Monthly

A method of calculating interest in which the interest accrued in each month adds to the principal for the calculation of subsequent interest.

Effective Annual Rate

The interest rate that is annually compounded, taking into account the effects of compounding.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Opportunity Cost

The financial consequence of skipping the immediate secondary choice while deciding.