Expenditures for Claims and Judgments, Compensated Absences, and Special Termination

question 131

True/False

Expenditures for claims and judgments, compensated absences, and special termination benefits should be recognized in the General Fund whether or not the liabilities are to be paid with available resources.

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Definitions:

Compounded Monthly

A method of calculating interest in which the interest is added to the principal amount on a monthly basis and each subsequent interest calculation is made on the increased principal.

Compounded Quarterly

A method where interest is added to an investment or loan balance three months, leading to an increase in the total amount over time due to the effect of compound interest.

Promissory Note

A legal document in which one party promises to pay a specified sum of money to another party under agreed-upon terms.

Discounted

The reduction of the nominal price of goods, services, or financial instruments.