Page 15 - 2023 Moreno Valley Popular Annual Financial Report

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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