Accounting Terms 3

What is earned interest revenue?

• Money received for the use of liabilities

• Money received for the use of money loaned

• Money received for the use of equity

• Money received for the use of assets

What is encroachment in accounting?

• Using unrestricted moneys to support unrestricted program expenditures

• Using restricted moneys to support restricted program expenditures

• Using restricted moneys to support unrestricted program expenditures

• Using unrestricted moneys to support restricted program expenditures

What are encumbrances in accounting?

• Obligations chargeable to an appropriation for which a part of the appropriation is reserved

• Liabilities reserved for future use

• Assets reserved for future use

• Deferred inflows of resources

What is an entitlement in accounting?

• An apportionment based on specific qualifications or formula defined in statute

• An apportionment based on general guidelines

• An apportionment based on market conditions

• An apportionment based on discretionary decisions

What do equity accounts represent?

• The difference between assets and liabilities

• The difference between assets and deferred outflows of resources

• The difference between liabilities and deferred inflows of resources

• The ratio (expressed as a percentage) of the indirect costs to direct base costs

What are expenses in accounting?

• Charges incurred for capital expenditures

• Charges incurred for long-term investments

• Charges incurred for operations, maintenance, interest, and other charges that benefit the current fiscal period

• Charges incurred for operations, maintenance, interest, and other charges that benefit the future fiscal period

What is a fund in accounting?

• A fiscal and accounting entity with no liabilities

• A fiscal and accounting entity with no restrictions

• A fiscal and accounting entity with unlimited resources

• A fiscal and accounting entity with a self-balancing set of accounts

What is fund balance in accounting?

• The difference between assets and liabilities

• The difference between the assets and deferred outflows of resources

• The difference between liabilities and deferred inflows of resources

• A system of bookkeeping that requires an amount credited for every corresponding amount debited

What is a general journal in accounting?

• A book of original entry for sales transactions only

• A book of original entry for payroll transactions only

• A book of original entry for cash transactions only

• A book of original entry for all entries of financial transactions that are not recorded in a special journal

What is a general ledger in accounting?

• A book containing sales transactions

• A book containing detailed financial transactions

• A book containing payroll transactions

• A book containing a detailed summary of the financial position of an account