Vocabulary Flashcards

1
Q

Accounting is the process of identifying, measuring and communicating economic information to permit informed judgments and ___________ by users of the information.

A

Decisions

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2
Q

Debits must always equal _______

A

Credits

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3
Q

True or False: Assets = Liabilities + Fund Balance

A

True

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4
Q

The old term for Fund Balance is ________

A

Surplus

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5
Q

True or False: Assets appear on the right side of the balance sheet

A

False

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6
Q

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

A

D. A general ledger

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7
Q

Name the 4 Books of Original Entry

A

Cash Receipts Journal
Cash Disbursements Journal
Payroll Journal
General Journal

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8
Q

Assets, Liabilities and Fund Balance are called permanent accounts because they will appear on what financial statement?

A

Balance Sheet

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9
Q

Revenue and Expenditure accounts are called _________ accounts because they will get closed to Budget Operations.

A

Temporary

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10
Q

Liabilities are increased with a (Debit or Credit)

A

Credit

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11
Q

Fund Balance appears on which side of the Balance Sheet

A

Right

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12
Q

Fund Balance is decrease with a (Debit or Credit)

A

Debit

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13
Q

In a double-entry accounting system every transaction has at least two entries which include a _______ and a _________

A

Debit and a Credit

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14
Q

How are revenues and expenditures recognized in Modified Accrual Accounting?

A

Revenue is recognized when Received

Expenditures are recognized when incurred

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15
Q

What does MRNA stand for?

A

Miscellaneous Revenue Not Anticipated

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16
Q

The State of NJ requires municipalities to use double entry accounting. What is the source of that requirement?

A

TAD #3

17
Q

What is GAAP?

A

Generally Accepted Accounting Principles.

18
Q

What is OCBOA?

A

Other Comprehensive Basis of Accounting

19
Q

Who is the Director of the Division of Local Government Services

A

Timothy Cunningham

20
Q

What are the 4 Commonly referenced Statutes

A

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

21
Q

What are the Technical Accounting Directives and how are they referred to now?

A

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)

22
Q

What are the two types of accounting methods?

A
  1. Financial Accounting

2. Management / Cost Accounting

23
Q

What is the purpose of a T- Account

A

Graphic representation of debits and credits in a specific account

24
Q

What are the 5 Basic Accounts that make up a General Ledger?

A
Assets
Liabilities
Fund Balance
Revenue
Expenditures
25
Q

What is the accounting equation

A

Assets = Liabilities + Fund Balance

26
Q

List at least 3 common Asset accounts

A
Cash
Petty Cash
Investments
Prepaid Insurance
Taxes Receivable
Tax Title Liens Receivable
Foreclosed Property
Interfund Receivable
Accounts Receivable
27
Q

List at least 3 common Liability account

A
Appropriation Reserves
Prepaid Taxes
County Taxes Payable
Interfund Payable
Accounts Payable
Encumbrance Payable
28
Q

What is an Accounts Receivable?

A

Amounts owed to you by other parties such as taxpayers, other agencies or financial institutions

29
Q

What is an Accounts Payable?

A

Bills or obligations that you owe to vendors or other agencies such as School Districts, County or Special District

30
Q

What is the definition of an Encumbrance?

A

To make difficult to use or obstruct. To burden with obligations