Accounting Acronyms
COA
What is Chart of Accounts?
Debit Dividends
Credit Cash
The company pays dividends to shareholders.
A financial statement that shows the revenues and expenses over a period of time.
What is the Income Statement?
The basis of accounting used by governmental funds that recognizes revenues when they are both measurable and available.
What is modified accrual basis?
Includes all income from whatever source derived, unless specifically exempted by law.
What is gross income?
PPE
What is Property, Plant, and Equipment?
Credit Common Stock
The principle that requires companies to record expenses in the same period as revenues when it generates.
What is the Matching Principle?
GASB Statement No. 34 requires governments to prepare this pair of statements using the economic resources measurement focus and full accrual basis.
What are the Statement of Net Position and the Statement of Activities?
Expenditures that reduce taxable income dollar-for-dollar.
Tax deductions
IFRS
What is International Financial Reporting Standards?
Debit Interest Receivable
Credit Interest Revenue
The company records accrued interest receivable.
When revenue is recorded before cash is received.
What is Accrued Revenue?
The five categories / classifications of fund balances.
Reduces tax liability dollar-for-dollar.
What are tax credits?
IRR
What is Internal Rate of Return?
Debit Cash
Credit Treasury Stock & Additional Paid-in Capital
The accounting concept that assumes a business will continue operating into the foreseeable future.
What is Going Concern Assumption?
This type of fund accounts for business-type activities that charge fees to external users.
What is an enterprise fund?
A business entity that is not subject to federal income taxation.
EBITDA
What is Earnings before interest, taxes, depreciation, and amortization?
Debit Sales Returns and Allowances
Credit Allowances for Sales Returns
The company records estimated sales returns.
The type of expenditure extends the useful life or improves the efficiency of an asset and is capitalized rather than expensed.
What is a capital expenditure?
GASB Statement No. 1 identifies this as a significant aspect of accountability, focusing on whether current-year revenues are sufficient to pay for current-year services.
What is interperiod equity?
Unlike regular depreciation, Section 179 expensing is not allowed for this category of assets.
What is real property?