Gov Exam 2

Expenditure

Spending of current financial resources; recorded when the government acquires an asset or pays a bill.

Expense

Cost of using up resources; recorded when consumed (government‑wide).

Modified Accrual

Accounting method used in governmental funds; focuses on current financial resources.

Full Accrual

Used in government‑wide statements; records all assets, liabilities, expenses.

Wages Payable

Liability for wages earned but not yet paid.

Compensated Absences

Employee benefits earned but taken later (vacation, sick leave).

Vacation Leave

Paid time off that usually vests; accrued in government‑wide statements.

Sick Leave

Time off for illness; only accrued if paid at retirement.

Sabbatical Leave

Extended leave; accounted for depending on purpose (training vs unrestricted).

Pension Expenditure

Amount contributed to pension plans in governmental funds.

Claims & Judgments

Legal liabilities from lawsuits; recorded when probable and estimable.

Supplies Inventory

Items held for use; recorded using consumption or purchases method.

Consumption Method

Record inventory when purchased; expenditure when used.

Purchases Method

Records the entire purchase of supplies as an expenditure immediately when bought, and adjusts inventory at year-end.

Prepayments / Prepaid Items

Payments made in advance for goods or services to be received in future periods.

Capital Projects Fund (CPF)

A fund created to account for financial resources restricted, committed, or assigned for the acquisition or construction of major capital facilities (other than those financed by proprietary or trust funds).

Debt Service Fund (DSF)

A fund created to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

Serial Bonds

Bonds that mature in periodic installments over a period of time, requiring regular principal payments.

Term Bonds

Bonds that mature all at once on a specified future date, usually requiring a sinking fund accumulation.

Debt Refunding

The issuance of new debt whose proceeds are used to repay previously issued debt (often done to secure lower interest rates).