Page 15 - Moreno Valley City 2025 PAFR

g l O S S a r y
glOSSary

CAPITAL ASSETS – Non-Current Assets that are used governments; or, by law through constitutional
in the operation of the City and have an initial useful provisions or enabling legislature.
life in excess of one year. Examples of capital assets
are buildings, computer equipment, machinery, and 3) Committed: Amounts that can be used only for
vehicles. the specific purposes pursuant to constraints
imposed by formal action of the government’s
CURRENT ASSETS – Liquid assets of the City such as highest authority, City Council.
cash or receivables; assets that can be liquidated within
a short period of time, usually one year. 4) Assigned: Amounts that are constrained by
the government’s intent to be used for specific
CURRENT LIABILITIES – City’s debt and obligations that purposes, but are neither restricted nor
are due within a year such as accounts payable, payroll committed.
taxes and matured principal payments.
5) Unassigned: Amounts that have not been
DEFERRED INFLOW (OUTFLOW) OF RESOURCES – restricted, committed, or assigned to specific
Like revenues and expenses, deferrals represent flows purposes.
of resources into and out of a government during the
fiscal year. However, unlike revenues and expenses GAAP (GENERALLY ACCEPTED ACCOUNTING
which are inflows and outflows of resources related to PRINCIPLES) – A collection of commonly-followed
the period in which they occur, deferrals are related to accounting rules and standards for financial reporting.
future periods.
LONG-TERM DEBT/NON-CURRENT LIABILITIES –
DEPRECIATION – A reduction in the value of an asset Debt and obligations that are due usually in more than
with the passage of time, due in particular to wear and one year such as bonds payable, claims payable, and
tear. landfill post closure.
DISCRETE COMPONENT UNIT – A legally separate MEDIAN VS. AVERAGE – The median of a set of
organization for which the elected officials of the numbers is that number where half the numbers are
primary government are financially accountable. lower and half the numbers are higher. In the case of
real estate, that means that the median is the price
FUND BALANCE – The excess of total assets as where half the homes sold in any given area that month
compared to total liabilities in a governmental fund and were less expensive, and half were more expensive than
listed under five categories: the median. The average of a set of numbers is the total
of those numbers divided by the number of items in
1) Non-spendable: Amounts that cannot be spent that set.
because they are either not in the spendable
form or are legally and contractually required NON-CURRENT ASSETS – Assets that cannot be
to be maintained intact. converted to cash or liquidated in a short period of time
such as fixed/capital assets, inventory, restricted assets,
2) Restricted: Amounts that are constrained on the and deferred charges.
use of resources by external creditors, grantors,
contributors, or laws or regulations of other RECEIVABLE(S) – Amounts owed from a customer, such
as a business or resident, regarded as assets.

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