Page 15 - 2022 Popular Annual Financial Report

CAPITAL ASSETS – Non-Current Assets that are used in the operation
of the City and have an initial useful life in excess of one year. Examples
of capital assets are buildings, computer equipment, machinery, and
vehicles.

CURRENT ASSETS – Liquid assets of the City such as cash or
receivables; assets that can be liquidated within a short period of time,
usually one year.

CURRENT LIABILITIES – City’s debt and obligations that are due within
a year such as accounts payable, payroll taxes, matured principal
payments, and the likes.

DEFERRED INFLOW (OUTFLOW) OF RESOURCES – Like revenues
and expenses, deferrals represent flows of resources into and out of
a government during the fiscal year. However, unlike revenues and
expenses which are inflows and outflows of resources related to the
period in which they occur, deferrals are related to future periods.

DEPRECIATION - A reduction in the value of an asset with the passage
y FUND BALANCE: is the excess of total assets as compared to total
of time, due in particular to wear and tear.

liabilities in a governmental fund and are listed under five categories:
glossar
1) Non-spendable: Amounts that cannot be spent because
they are either not in the spendable form or are legally and
contractually required to be maintained intact.
2) Restricted: Amounts that are constrained on the use of
resources by external creditors, grantors, contributors, or
laws or regulations of other governments; or, by law through
constitutional provisions or enabling legislature.
3) Committed: Amounts that can be used only for the specific
purposes pursuant to constraints imposed by formal action
of the government’s highest authority, City Council.
4) Assigned: Amounts that are constrained by the government’s
intent to be used for specific purposes, but are neither
restricted nor committed.
5) Unassigned: the residual amounts that have not been
restricted, committed, or assigned to specific purposes.

GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) - A
collection of commonly-followed accounting rules and standards for
financial reporting.

LONG-TERM DEBT/NON-CURRENT LIABILITIES – Debt and obligations
that are due usually in more than one-year such as bonds payable,
claims payable, landfill post closure, and the likes.

MEDIAN VS. AVERAGE - The median of a set of numbers is that number
where half the numbers are lower and half the numbers are higher. In
the case of real estate, that means that the median is the price where
half the homes sold in any given area that month were less expensive,
and half were more expensive than the median. The average of a set of
numbers is the total of those numbers divided by the number of items
in that set.

NON-CURRENT ASSETS – Assets that cannot be converted to cash
or liquidated in a short period of time such as fixed/capital assets,
inventory, restricted assets, deferred charges, and the likes.

RECEIVABLE(S) - amounts owed from a business, regarded as assets.
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