Class I Review Flashcards
An equation generally used to summarize the content of a financial statement is:
Assets-Liabilities=Fund Balance
A double entry system is completely represented by:
A General Ledger
A credit to a revenue account ______.
Increases revenue
An accounting system that records income when earned and expenditures when the liability is incurred operates on the ________.
Accrual basis
An amount payable in money, goods and services that is owed by a business entity to a creditor is known as a __________.
Liability
The payment of a vendor invoice may be recorded in the __________
Cash disbursements journal
T-accounts are a graphic representation of _________.
Accounts to help visualize debit and credit entries
What is the Chart of Accounts?
A complete listing of general ledger accounts, including revenues and expenditures, generally in the order that they appear on the general ledger
An example of a liability account would be:
Prepaid taxes
The technical accounting directives are now codified in:
NJAC 5:30 et seq.
What does the trial balance do?
Lists all accounts in the general ledger with their to-date balances
Technical Accounting Directive Number 85-3 mandates:
The use of the general ledger
GASB is:
An independent professional board that sets standards for government accounting and financial reporting principales
In self balancing accounts, assets must :
Equal liabilities plus fund balance
The General Ledger is the:
Permanent financial record of the local unit
