Accounting Acronyms
What is GAAP?
General Accepted Accounting Principles
What are the sections of a balance sheet?
Assets, liabilities, and equity
What is it called when a bond sells at a price above face value?
Premium
What is considered as the 'cornerstone' of financial reporting in government?
Accountability
What are the 3 Tax Rates for Long-Term Capital Gains
0%, 15%, 20%
What is AICPA?
American Institute of Certified Public Accountants
What are the 3 activities reported in the Statement of Cash Flows?
Operating, Investing, and Financing
What inventory method assumes that the oldest inventory is sold first?
First In, First Out (FIFO)
What organization sets accounting standards for the federal government?
Federal Accounting Standards Advisory Board (FASAB)
What are the 5 Filing Statuses?
Single, Head of Household, Married Filing Separately, Married Filing Jointly, and Qualifying Surviving Spouse
What is IFRS?
International Financial Reporting Standards
Which Financial Statement Reports Permanent Accounts?
Balance Sheet
What results from differences between book and tax income?
Deferred Tax Assets and/or Deferred Tax Liabilities
What is the basis of accounting used by Governmental Funds?
Modified Accrual Basis
What is Form W-2?
This form shows the wages earned and the taxes withheld.
What is SOX?
Sarbanes-Oxley Act
What is the revenue recognition principle?
This principle recognizing revenue when it is earned and realizable.
What is the Statement of Net Position?
This statement presents a long-term, government-wide view of the government's financial position.
What is the four tests to be considered a qualifying child?
Relationship, age, residence, and support
What is FASAB?
Federal Accounting Standards Advisory Board
What statement shows the financial position at a specific date?
Balance Sheet
Based on the accounting Conceptual Framework, what makes financial information useful?
The characteristics of useful financial information are relevance and faithful information.
What is Management's Discussion and Analysis (MD&A)?
It is management's analysis of financial activities and results that is not audited.
What is the Individual Income Tax Formula?
Gross income - For AGI deductions = AGI - From AGI deductions = Taxable Income * Tax Rates = Income Tax Liability + Other Taxes = Total Tax - Credits - Prepayments = Taxes due or (refund)