While Governmental Fund Liabilities and Expenditures for Debt Service on General

question 19

True/False

While governmental fund liabilities and expenditures for debt service on general long-term debt are generally recognized in the reporting period that debt payments are due to correspond with appropriations,if a government has deposited or transferred financial resources dedicated for payment of debt service to the debt service fund and payment of principal and interest is due early in the following year,then the expenditure and related liability may be recognized in the debt service fund prior to year end.

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Definitions:

Forecasted Cost

An estimate of the expenses that will be incurred on a project or by a company in a future period.

Average Cost

The total cost of goods available for sale divided by the total number of units available for sale, determining an inventory valuation.

Sensitivity

The degree to which the value of an investment or financial metric responds to changes in market conditions or other variables.

Net Present Value

A calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.