Page 15 - 2023 Moreno Valley Popular Annual Financial Report
P. 15

GLOSSARY
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        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.
                                                     glossar
        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 and matured
        principal payments.

        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 of time, due in particular to wear and tear.

        FUND BALANCE – The excess of total assets as compared to total liabilities in a governmental fund and listed under five categories:

              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: 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, and landfill post closure.

        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, and deferred charges.

        RECEIVABLE(S) – Amounts owed from a customer, such as a business or resident, regarded as assets.
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