Glossary

Question 1

ASB

Answer 1

Estab AICPA to promulgate GAAS; Follows due process proc & issues SAS;
Role - changed by SOX and PCOAB

Question 2

ASLG (Audits of S & L Govt)

Answer 2

Audit & acctg guide pertains to S & L govt, published by AICPA

Question 3

Authorization (fed budgeting process)

Answer 3

1 of 2 steps reqd in order for prog to operate;
performed by congressional committees in House & Senate
(other step is approp, which prov funding for prog)

Question 4

Avg cost

Answer 4

Method of valuing inventory - ea item is given value based on # & price of all items in inventory
Method used primarily for fungible items (gas, oil, coal)

Question 5

B/S (S & L)

Answer 5

Lists assets, deferred outflow of resources, liab, deferred inflow of resources, and fund balance/net position of rptg entity as of particular point in time

Question 6

B/S (Fed govt)

Answer 6

B/S, Stmt of Net Cost, Stmt of Changes in Net Position, Stmt of Budgetary Resources
(for some agencies, Stmt of Custodial Activity, Stmt of Social Insurance, Stmt of Changes in Social Insurance)

Question 7

Basis of Acctg

Answer 7

Timing of recognition of trans; when (in what period), should trans be rptd.
- Accrual, modified accrual, cash

Question 8

Blending

Answer 8

One of methods of rptg component units in F/S; Have strong assoc w/ primary govt

Question 9

Accountability

Answer 9

Need for public officials to be accountable for their actions & justify their decisions relating to raising of public resources and how those resources are used
- right to know

Question 10

Accrual BOA

Answer 10

Recog fin trans when trans occur, regardless of timing of cash flows;
Rev recog when earned or due to govt;
Exp recog when incurred

Question 11

Advance refunding

Answer 11

Issuing new debt to gain bene of retiring old debt that has higher I/R, but w/o actually retiring the debt;
proceeds of new debt invested and earnings, + investmt, used to pay interest of old debt, as well as P of old debt as it matures

Question 12

Agency funds

Answer 12

One of fiduciary fund types;
Proceeds are held by govt as a custodian for other indiv, orgs, or govts
No residual balances; A = L

Question 13

Allotment (S & L Acctg)

Answer 13

Dividing approp by smaller increments, usu by time (i.e. qtr), for purp of control

Question 14

Allotment (fed acctg)

Answer 14

Formal delegation of auth by the head of a federal entity to other entity employees (i.e. head of an operating unit, to incur oblig)

Question 15

Apportionment (fed govt)

Answer 15

Plan providing an agy w/ exec branch auth to obligate and/or expend approp in a manner consistent w/ plan;
divide approp into smaller increments based on time, etc.
Process overseen by OMB

Question 16

Approp

Answer 16

Legal auth granted by legis body to spend money for purp indicated;
Amt sets limits on what can be spent

Question 17

Assigned fund bal

Answer 17

Amts constrained by govt intent to be used for specific purp, but are neither restricted nor committed, but assigned for specific purp.

Question 18

Block grant

Answer 18

Method of awarding grants to recipients;

Combines several indiv prog into a single grant award

Question 19

Bond anticipation note (BAN)

Answer 19

ST financing mechanism used to prov fin resources to undertake cap proj prior to issuance of LT bonds;
proceeds of bonds are used to retire note

Question 20

Bond discount

Answer 20

Diff between amt of proceeds recd and face value of bond that is sold for less than face value of the issue.
Result of receiving lower amt, bond has higher effective interest rate than stated rate

Question 21

Bond indenture

Answer 21

Specific legal reqmts set forth in the bond issue pertaining to actions to be taken by the issuer to protect bond holders

Question 22

Bond premium

Answer 22

Diff between amt of proceeds received and face value of bond that is sold for amt greater than face value of issue;
Bond has lower effective int rate; Premium is opposite of discount

Question 23

Book value

Answer 23

Net amt at which asset is carried on books of acct; BV = gross or nominal amt of asset - any allowance or valuation; Also referred to as carrying value

Question 24

Borrowing authority (in fed acctg)

Answer 24

Auth given in law that permits agy to borrow funds in order to incur oblig

Question 25

Budget Authority (in fed acctg)

Answer 25

Auth provided in law to enter into legal oblig;

Includes approp, borrowing auth, contract auth, and spending auth from offsetting collections

Question 26

Budget BOA

Answer 26

Basis used by govt for budgetary purp; Determines when rev and expend are to be recog

Question 27

Budget resolution (in fed budgeting process)

Answer 27

Limits estab by Congress for receipt and spending, and size of the deficit or surplus

Question 28

Budgetary acctg sys

Answer 28

Method used by govt to acct for rev and expend assoc w/ budget; Budgetary accts are integrated w/ fin accts for purp of prep fin rpts

Question 29

Budgetary comparison schedules

Answer 29

Reqd supplementary presentation for S & L govt;
Reqd for GF and ea major SR that has a legally adopted annual budget; Includes orig budget, final budget, and actual for rev and expend

Question 30

Budgetary resources (as used in fed acctg & budgeting)

Answer 30

Total amt avail to incur oblig in a given yr; comprises new budget auth and unobligated bal of budgeted auth provided in prev yrs

Question 31

Business type activities

Answer 31

Activities prov by govt for which a fee or user charge is reqd. Sim to private business and acctg used is essentially the same; 1 of 2 categories of rptg at govt wide level by S & L govt

Question 32

Capital assets

Answer 32

Land, land imp, easements, bldgs., bldg. imp, equip, veh, infrastructure, and other tangible assets used in oper

Question 33

Capital Budget

Answer 33

Budget prepared by govt that set forth spending for proj that are to be used for cap purp and how they are to be financed

Question 34

Capital Contributions

Answer 34

Cap assets prov by govt activities to bus type activities, proprietary or fiduciary funds in S & L govt model. Value of cap assests is rpts as rev in yr of contribution is made; incl cap assets prov by 1 govt to another govt

Question 35

Capital contribution ex

Answer 35

Surplus police cars given by state to a local govt and cap assets donated by developers to the govt

Question 36

Capital lease

Answer 36

Lease that transfers, substantially, all of the bene and risks of ownership from the lessor to the lessee.