Business and Personal Finance Dictionary

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• ACCRUAL BASIS OF ACCOUNTING
  
  The accrual basis of accounting is used in proprietary fund types and the pension trust fund. The accrual basis of accounting recognizes revenues when earned. Expenses are recorded when incurred. Plan member contributions to the pension trust fund are recognized in the period in which the contributions are due. Employer contributions to the plan are recognized when due and the City has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.
  
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