Chart of Accounts - 07/01/13 and Later - General Accounting Office
Chart of Accounts - 07/01/13 and Later - General Accounting Office Chart of Accounts - 07/01/13 and Later - General Accounting Office
PARTARIZONA ACCOUNTING MANUALAND SECTIONIV-A-1PAGE2DATE07/01/13SUBJECTCOMPTROLLER GENERAL LEDGERFY 14 CHART OF ACCOUNTSDefinitions (Cont’d)Contra accounts cause a reduction in the amounts that would be otherwise reported. For example,net revenue is gross revenue minus returns, allowances, and discounts. The net realizable value ofaccounts receivable is the accounts receivable balance minus the allowance for doubtful accounts.Control Account: A control account is a summary account in the general ledger. The details thatsupport the balance in the summary account are contained in a subsidiary ledger or table (ledgeroutside of the general ledger).The purpose of the control account is to keep the general ledger free of details, yet have the correctbalance for the financial statements. For example, the Accounts Receivable account in the generalledger could be a control account. If it were a control account, the company would merely update theaccount with a few amounts, such as total collections for the day, total sales on account for the day,total returns and allowances for the day, etc. The details on each customer and each transactionwould not be recorded in the Accounts Receivable control account in the general ledger. Rather,these details of the accounts receivable activity will be in the Accounts Receivable Subsidiary Ledger.GAAP General Ledger Account Class: These are used to group General Ledger Accounts. GeneralLedger Account Classes will appear as line items on the GAAP basis financial statements. Examplesinclude Fund Cash Account, Accounts Receivable, Warrants Payable and Other.GAAP General Ledger Account Category: These are used to group GAAP General Ledger AccountClasses. These categories are the highest level of general ledger account structure required forstatewide GAAP reporting. Refer to the list below.GAAP General Ledger Account Category1 Cash2 Current Receivables Treasurer3 Short-term Investments Treasurer4 Current Receivables6 Other Current Receivables8 Fixed Assets9 Other Assets12 Current Payables13 Accrued Wages & Related Liabilities16 Other Current Liabilities17 Long-term Liabilities20 Treasurer Liabilities30 Fund BalanceGeneral Ledger Account: A general ledger account identifies the nature of financial activities andbalances. The general ledger includes both balance sheet and operating accounts (ComptrollerGeneral Ledger Accounts) and operating accounts (Comptroller Object Accounts).
PARTARIZONA ACCOUNTING MANUALAND SECTIONIV-A-1PAGE3DATE07/01/13SUBJECTCOMPTROLLER GENERAL LEDGERFY 14 CHART OF ACCOUNTSDefinitions (Con’t)Operating or Nominal Accounts: These accounts are closed—that is, reduced to zero—at the end ofeach accounting year; nominal or operating accounts include revenue and expenditure accounts.Sweep Account: This is an account that, at the close of each business day, automatically transfersamounts that exceed (or fall short of) a certain level into a higher-interest earning account. In asweep program, computers analyze a cash account balance and "sweep" funds into investments.Suspense Account: A suspense account is a temporary account used to force a trial balance tobalance if there is only a small discrepancy (or if an account's balance is simply wrong and requirestime to correct). A typical example would be a small error in petty cash. In this case a transfer wouldbe made to a suspense account to balance the cash account. Once the cause of the error isunderstood, a transfer entry will be made in the journal to credit or debit the suspense account backto zero with a balancing transaction to the correct account.
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PARTARIZONA ACCOUNTING MANUALAND SECTIONIV-A-1PAGE3DATE<strong>07</strong>/<strong>01</strong>/<strong>13</strong>SUBJECTCOMPTROLLER GENERAL LEDGERFY 14 CHART OF ACCOUNTSDefinitions (Con’t)Operating or Nominal <strong>Accounts</strong>: These accounts are closed—that is, reduced to zero—at the end <strong>of</strong>each accounting year; nominal or operating accounts include revenue <strong>and</strong> expenditure accounts.Sweep Account: This is an account that, at the close <strong>of</strong> each business day, automatically transfersamounts that exceed (or fall short <strong>of</strong>) a certain level into a higher-interest earning account. In asweep program, computers analyze a cash account balance <strong>and</strong> "sweep" funds into investments.Suspense Account: A suspense account is a temporary account used to force a trial balance tobalance if there is only a small discrepancy (or if an account's balance is simply wrong <strong>and</strong> requirestime to correct). A typical example would be a small error in petty cash. In this case a transfer wouldbe made to a suspense account to balance the cash account. Once the cause <strong>of</strong> the error isunderstood, a transfer entry will be made in the journal to credit or debit the suspense account backto zero with a balancing transaction to the correct account.
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