Unlike the General Fund and Other Major Governmental Funds for Which

question 21

True/False

Unlike the General Fund and other major governmental funds for which a budget is legally adopted, proprietary funds are not required by GASB standards to record budgets in their accounting systems, nor are they required to present a budgetary comparison schedule.

---

Definitions:

Compounded Quarterly

The process in which interest is calculated on the principal and the accumulated interest over a quarter (three months) and is added to the principal for calculating future interest.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or officially recorded.

Nominal Interest

The stated interest rate of a loan or investment, not accounting for inflation or compounding effects.

Equivalent

Something that is equal in value, function, or meaning to another in a specified context.