E-Equipment may be capital outlay or replacement. See CAPITAL OUTLAY and REPLACEMENT in GLOSSARY OF TERMS.

E-Equipment may be capital outlay or replacement. See CAPITAL OUTLAY and REPLACEMENT in GLOSSARY OF TERMS.

E-Equipment may be capital outlay or replacement. See CAPITAL OUTLAY and REPLACEMENT in GLOSSARY OF TERMS.

E-Equipment may be capital outlay or replacement. See CAPITAL OUTLAY and REPLACEMENT in GLOSSARY OF TERMS.

CHAPTER 12

Glossary of Terms

THIS CHAPTER contains definitions of terms used in this handbook and such additional terms as seem necessary to common understandings concerning financial accounting procedures for schools. Some of the terms apply only to the cash basis of accounting, some apply only to the accrual basis, and some apply to both. Several terms which are not primarily financial accounting terms have been included because of their significance for school financial accounting. The glossary is arranged alphabetically with appropriate cross-referencing where necessary.

Many of the definitions have been taken from the recommendations of the National Committee on Governmental Accounting.1 These are shown by an asterisk following the definition. Many others have been taken from Handbook I in the Educational Records and Reports Series.2 These are shown by two asterisks following the definition.

Abatement—A reduction of a previ

ously recorded expenditure or receipt item by such things as refunds, rebates, and collections for loss or damage to school property. Account-A descriptive heading under which are recorded financial transactions that are similar in terms of a given frame of reference, such as purpose, object, or

source.

Accounting Period --A period at the end of which and for which financial statements are prepared; for example, July 1 to June 30.

Accounts Payable-Unpaid balances or invoices against a school district which are due and owing to private persons, firms, governmental units, or others.

Accounts Receivable-Amounts owed to the school district by private persons, firms, governmental units, or others.

Accrual Basis-The basis of accounting under which revenues are recorded when earned or when levies are made, and expenditures are recorded as soon as they result in liabilities, regardless of when the

1 National Committee on Governmental Accounting. Municipal Accounting and Auditing. Bulletin No. 14, Municipal Finance Officers Association of the United States and Canada, Chicago, September 1951.

* Reason, Paul L., Foster, Emery M., and Will, Robert F. The Common Core of State Educational Information. Washington, U. S. Government Printing Office, 1953. (U. S. Department of Health, Education, and Welfare, Office of Education, State Educational Records and Reports Series: Handbook I, Bulletin 1953, No. 8.)