Vocabulary Flashcards
Accounting is the process of identifying, measuring and communicating economic information to permit informed judgments and ___________ by users of the information.
Decisions
Debits must always equal _______
Credits
True or False: Assets = Liabilities + Fund Balance
True
The old term for Fund Balance is ________
Surplus
True or False: Assets appear on the right side of the balance sheet
False
A double entry system is completely represented by which of the following?
A. Checkbook
B. Fixed Asset Ledger
C. A receipt book
D. A general ledger
D. A general ledger
Name the 4 Books of Original Entry
Cash Receipts Journal
Cash Disbursements Journal
Payroll Journal
General Journal
Assets, Liabilities and Fund Balance are called permanent accounts because they will appear on what financial statement?
Balance Sheet
Revenue and Expenditure accounts are called _________ accounts because they will get closed to Budget Operations.
Temporary
Liabilities are increased with a (Debit or Credit)
Credit
Fund Balance appears on which side of the Balance Sheet
Right
Fund Balance is decrease with a (Debit or Credit)
Debit
In a double-entry accounting system every transaction has at least two entries which include a _______ and a _________
Debit and a Credit
How are revenues and expenditures recognized in Modified Accrual Accounting?
Revenue is recognized when Received
Expenditures are recognized when incurred
What does MRNA stand for?
Miscellaneous Revenue Not Anticipated
The State of NJ requires municipalities to use double entry accounting. What is the source of that requirement?
TAD #3
What is GAAP?
Generally Accepted Accounting Principles.
What is OCBOA?
Other Comprehensive Basis of Accounting
Who is the Director of the Division of Local Government Services
Timothy Cunningham
What are the 4 Commonly referenced Statutes
NJSA 40A:2 Local Bond Law
NJSA 40A:4 Local Budget Law
NJSA 40A:5 Local Fiscal Affairs Law
NJSA 40A:11 Local Public Contracts Law
What are the Technical Accounting Directives and how are they referred to now?
TAD#1 - Encumbrances (NJAC 5:30-5.2)
TAD#2 - Fixed Assets (NJAC 5:30-5.6)
TAD#3 - General Ledger (NJAC 5:30-5.7)
What are the two types of accounting methods?
- Financial Accounting
2. Management / Cost Accounting
What is the purpose of a T- Account
Graphic representation of debits and credits in a specific account
What are the 5 Basic Accounts that make up a General Ledger?
Assets Liabilities Fund Balance Revenue Expenditures
What is the accounting equation
Assets = Liabilities + Fund Balance
List at least 3 common Asset accounts
Cash Petty Cash Investments Prepaid Insurance Taxes Receivable Tax Title Liens Receivable Foreclosed Property Interfund Receivable Accounts Receivable
List at least 3 common Liability account
Appropriation Reserves Prepaid Taxes County Taxes Payable Interfund Payable Accounts Payable Encumbrance Payable
What is an Accounts Receivable?
Amounts owed to you by other parties such as taxpayers, other agencies or financial institutions
What is an Accounts Payable?
Bills or obligations that you owe to vendors or other agencies such as School Districts, County or Special District
What is the definition of an Encumbrance?
To make difficult to use or obstruct. To burden with obligations
