Accounting Terms Defined (O – Z)

Accounting starts with A, B, C’s and 1, 2, 3’s.  We gave you the A, B, C’s–actually the A thru N’s–of government accounting terms last week, so this week we will finish off with O – Z’s.  So enjoy the quick brush-up on your accounting vocab, and as before, for a full list of accounting terms, don’t forget to check out the Accounting Glossary.

O -Operating Budget: A plan of current expenditures and the proposed means of financing them. The operating budget is the primary means to ensuring that the financing, acquisition, spending, and service delivery activities of the state are controlled.

P – Prepaid Expenses: Payments made for those supplies and/or services (not inventory) acquired or purchased during an accounting period but not consumed or used at the end of the accounting period.

R -Reimbursement: 1) Repayments of amounts remitted on behalf of another party. 2) Interfund/Interagency transactions that constitute reimbursement to a fund/agency for expenditures/expenses initially made from it but that properly apply to another. These transactions are recorded as expenditures/expenses in the reimbursing fund/agency and as reductions of expenditures/expenses in the fund/agency reimbursed.

S -Special Revenue Funds (also called Governmental Funds): Special revenue funds are used to account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations or other governments or for major capital projects) that are legally restricted to expenditure for specified purposes.

T -Trial Balance: A list of balances of the accounts in a ledger kept by double entry with the debit and credit balances shown in separate columns.

U -Unreserved Fund Balance: Unreserved fund balance is that portion of governmental fund equity that is neither legally segregated for a specific future use nor unavailable for appropriation. It may be either designated or undesignated. Designations may be established to indicate tentative plans for financial resource utilization in a future period. Unreserved, undesignated fund balance is available for appropriation.

V – Voucher: A written document that evidences the propriety of transactions and usually indicates the accounts in which they are to be recorded.

W – Wire Transfer (also called Electronic Fund Transfer): A type of electronic fund transfer that guarantees immediate available funds or same day settlement. The payments are conducted on the Federal Reserve System’s federal wire (Fed Wire) network.

X – Z: We couldn’t come up with any!  Do you know of any X, Y, or Z terms?  Help us out!  Post them to our comments!

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One Comment

  1. Access Accounting
    Posted October 21, 2012 at 11:22 pm | Permalink

    Nice definitions! 🙂 It’s a very informative post. Thanks for sharing!