What Are the Elements of the Financial Statements of State

question 10

Essay

What are the elements of the financial statements of state and local governments? Which elements relate to statements of net position? How do these elements differ from those reported by businesses?

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Definitions:

Chart of Accounts

The chart of accounts is a systematic listing of all account titles and numbers used in a company's accounting system, facilitating organization and financial reporting.

Note Receivable

A financial asset representing a promise to pay a specific amount of money, plus interest if applicable, by a certain date or dates.

T-account

A T-account is a visual representation of a general ledger account that outlines a business's debits and credits.

Unearned Revenues

Income received by a company for goods or services that have yet to be delivered or performed.