What does net position mean on the CPA exam?
Net position. A government's assets plus deferred outflows, less liabilities and deferred inflows. The government-wide equivalent of equity, reported in three components.
Defined against GASB 63.
Which CPA exam sections use net position?
Net position appears in the BAR section of the CPA exam.
Related terms
- deferred inflow of resources: An acquisition of net assets that belongs to a future period, so it sits between liabilities and equity on a government's statement of net position rather than in either.
- deferred outflow of resources: A consumption of net assets that belongs to a future period.
- temporary difference: A difference between the tax basis of an asset or liability and its reported amount that will produce taxable or deductible amounts in future years.
- balance sheet: A snapshot at one date of what the entity owns, what it owes, and the owners' residual.
- net assets: Assets less liabilities.
- total liabilities: Everything the entity owes, added up.