What Information Is Required in the Financial Section of a State

question 17

Essay

What information is required in the financial section of a state or local government's CAFR?

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Definitions:

Direct Write-Off Method

A method of accounting for bad debts that charges the amount of an outstanding account directly to the expense account at the time it is deemed uncollectable.

Accounting Equation

A fundamental principle of accounting that equates assets with the sum of liabilities and shareholders' equity (Assets = Liabilities + Equity).

Partial Balance Sheet

A financial statement that shows a subset of the assets, liabilities, and equity of a company at a specific point in time.

Total Current Assets

The value of all assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.