(A) This account shall include the amount of current funds available for use on demand in the hands of financial officers and agents, deposited in banks or other financial institutions and also funds in transit for which agents have received credit.

(B) Working cash advances shall be included in account 1150, Working Cash Advances.

(A) This account shall include the amount of cash on special deposit, other than in sinking and other special funds provided for elsewhere, to pay dividends, interest, and other debts, when such payments are due one year or less from the date of deposit; the amount of cash deposited to insure the performance of contracts to be performed within one year from date of the deposit; and other cash deposits of a special nature not provided for elsewhere. This account shall include the amount of cash deposited with trustees to be held until mortgaged property sold, destroyed, or otherwise disposed of is replaced, and also cash realized from the sale of the company's securities and deposited with trustees to be held until invested in physical property of the company or for disbursement when the purposes for which the securities were sold are accomplished.

(B) Cash on deposit in special accounts where the funds are available for the current requirements of the company shall be included in account 1130, Cash.

(C) Cash on special deposit to be held for more than one year from the date of deposit shall be included in account 1410, Other Noncurrent Assets.

This account shall include the amount of cash advanced to officers, agents, employees, and others as petty cash or working funds from which expenditures are to be made and accounted for. (See section 661.16[i] of this Title.)

(A) This account shall include the cost of current securities acquired for the purpose of temporarily investing cash, such as time drafts receivable and time loans, bankers' acceptances, U.S. Treasury certificates, marketable securities, and other similar investments of a temporary character.

(B) Accumulated changes in the net unrealized losses of current marketable equity securities shall be included in the determination of net income in the period in which they occur in account 7360, Other Nonoperating Income.

(A) This account shall include all amounts due from customers for services rendered or billed and from agents and collectors authorized to make collections from customers. This account shall also include all amounts due from customers or agents for products sold. This account shall be kept in such manner as will enable the company to make the following analysis:

(B) Collections in excess of amounts charged to this account may be credited to and carried in this account until applied against charges for services rendered or until refunded.

(C) Subaccounts shall be maintained in accordance with the instructions in section 661.16(i) of this Title.

(A) This account shall be credited with amounts charged to account 5301, Uncollectible Revenue—Telecommunications to provide for uncollectible amounts included in account 1180, Telecommunications Accounts Receivable. There shall also be credited to this account amounts collected which previously had been written off through charges to this account and credits to account 1180. There shall be charged to this account any amounts covered thereby which have been found to be impracticable of collection.

(B) If no such allowance is maintained, uncollectible amounts shall be charged directly to account 5301, Uncollectible Revenue Telecommunications.

(A) This account shall include all amounts currently due from affiliated companies and not provided for in other accounts, such as those for traffic settlements, divisions of revenue, material and supplies, matured rents, and interest receivable under monthly settlements on short-term loans, advances, and open accounts.

(B) Amounts included in this account shall not include amounts receivable from sales of telecommunications service provided at tariffed rates. Such amounts shall be included in account 1180, Telecommunications Accounts Receivable.

(A) This account shall include all amounts currently due, other than those from affiliated companies, and not provided for in other accounts, such as those for traffic settlements, divisions of revenue, material and supplies, matured rents, and interest receivable under monthly settlements on short-term loans, advances, and open accounts.

(B) If any items included in this account are not to be paid currently they shall be transferred to account 1410, Other Noncurrent Assets.

(A) This account shall be credited with amounts charged to account 5302, Uncollectible Revenue—Other to provide for uncollectible amounts included in account 1190.1, Accounts Receivable from Affiliated Companies, or account 1190.2, Other Accounts Receivable. There shall also be credited to this account amounts collected which previously had been written off through charges to this account and credits to account 1190.1 or account 1190.2. There shall be charged to this account any amounts covered thereby which have been found to be impracticable of collection.

(B) If no such allowance is maintained, uncollectible amounts shall be charged directly to account 5302, Uncollectible Revenue—Other.

This account shall include the cost of demand or time notes, bills and drafts receivable, or other similar evidences (except interest coupons) of money receivable from affiliated companies on demand or within a time not exceeding one year from date of issue.

This account shall include the cost of demand or time notes, bills and drafts receivable, or other similar evidences (except interest coupons) of money receivable from nonaffiliated companies or individuals on demand or within a time not exceeding one year from date of issue.

(A) This account shall be credited with amounts charged to account 6790, Provision for Uncollectible Notes Receivable to provide for uncollectible amounts included in account 1200.1, Notes Receivable from Affiliated Companies or account 1200.2, Other Notes Receivable. There shall also be credited to this account amounts collected which previously had been written off through charges to this account and credits to account 1200.1 or account 1200.2. There shall be charged to this account any amounts covered thereby which have been found to be impracticable of collection.

(B) If no such allowance is maintained, uncollectible amounts shall be charged directly to account 6790, Provision for Uncollectible Notes Receivable.

(C) Subsidiary record categories shall be maintained in order that the entity may separately report the amounts contained herein that relate to affiliates and nonaffiliates.

(A) This account shall include the amount of interest accrued to the date of the balance sheet on bonds, notes, and other commercial paper owned, on loans made, and the amount of dividends receivable on stocks owned.

(B) This account shall not include dividends or other returns on securities issued or assumed by the company and held by or for it, whether pledged as collateral, or held in its treasury, in special deposits, or in sinking and other funds.

(C) Interest receivable under monthly settlements on short-term loans, advances, and open accounts, shall be included in accounts 1180, Telecommunications Accounts Receivable, 1190.1, Accounts Receivable from Affiliated Companies or account 1190.2, Other Accounts Receivable, as appropriate.

(D) Dividends received and receivable from affiliated companies accounted for on the equity method shall be included in account 1401.1, Investments in Affiliated Companies, as a reduction of the carrying value of the investment.

(A) This account shall include the cost of material and supplies held in stock and inventories of goods held for resale or lease. The investment in inventories shall be maintained in the following subaccounts:

(B) This account shall not include material and supplies which are dedicated to the company's nonregulated activities unless that activity involves joint or common use of assets and resources in the provision of regulated and nonregulated products and services.

(C) 1220.1 Material and supplies. This subaccount shall include the cost of material and supplies held in stock including plant supplies, motor vehicles supplies, tools, fuel, other supplies and material and articles of the company in process of manufacture for supply stock. (See section 663.3[b][3] of this Title).

(D) Transportation charges and sales and use taxes, so far as practicable, shall be included as a part of the cost of the particular material to which they relate. Transportation charges and sales and use taxes which are not included as part of the cost of particular material shall be equitably apportioned among the detail accounts to which material is charged.

(E) So far as practicable, cash and other discount on material shall be deducted in determining the cost of the particular material to which they relate or credited to the account to which the material is charged. When such deduction is not practicable, discounts shall be equitably apportioned among the detail accounts to which material is charged.

(F) Material recovered in connection with construction, maintenance or retirement of property shall be charged to this account as follows:

(G) Interest paid on material bills, the payments of which are delayed, shall be charged to account 7540.1, Other Interest Deductions—Affiliated companies, or account 7540.2, Other Interest Deductions, as appropriate.

(H) Inventories of material and supplies shall be taken during each calendar year and the adjustments to this account shall be charged or credited to account 6512, Provisioning Expense.

(I) 1220.2 Property held for sale or lease. This subaccount shall include the cost of all items purchased for resale or lease. The cost shall include applicable transportation charges, sales and use taxes, and cash and other purchase discounts. Inventory shortages and overages shall be charged and credited, respectively, to account 5280, Nonregulated Operating Revenue.

This account shall include the amounts of rents paid in advance of the period in which they are chargeable to income, except amounts chargeable to telecommunications plant under construction and minor amounts which may be charged directly to the final accounts. As the term expires for which the rents are paid, this account shall be credited monthly and the appropriate account charged. (Note also section 663.3[b] of this Title.)

This account shall include the balance of all taxes, other than amounts chargeable to telecommunication plant under construction and minor amounts which may be charged to the final accounts, paid in advance and which are chargeable to income within one year. As the term expires for which the taxes are paid, this account shall be credited monthly and the appropriate account charged. (Note also section 663.3[b][8] of this Title.)

This account shall include the amount of insurance premiums paid in advance of the period in which they are chargeable to income, except premiums chargeable to telecommunications plant under construction and minor amounts which may be charged directly to the final accounts. As the term expires for which the premiums are paid, this account shall be credited monthly and the appropriate account charged. (Note also section 663.3[b] [11] of this Title.)

This account shall include the cost of preparing, printing, binding, and delivering directories and the cost of soliciting advertisements for directories, except minor amounts which may be charged directly to account 6622.2, Number Services—Directory Publishing. Amounts in this account shall be cleared to account 6622.2 by monthly charges representing that portion of the expenses applicable to each month.

This account shall include prepayments, other than those includable in accounts 1290 through 1320, except minor amounts which may be charged directly to the final accounts. As the term expires for which the payments apply, this account shall be credited monthly and the appropriate account charged.

This account shall include the amount of all current assets which are not includable in accounts 1130 through 1330, inclusive, such as unmatured rent receivable. (Note also section 662.2. of this Title.)

(A) This account shall include the balance of related income taxes resulting from a normalized method of accounting which are paid in advance, but which are expected to be charged to income in a future period (within one year).

(B) As items which generated the prepaid income tax are reclassified from long-term to current, the appropriate prepaid income tax shall be reclassified from account 1510, Noncurrent Deferred Income Taxes—Dr, to this account.

(C) This account shall be debited with the amount being credited to account 7250, Provision for Deferred Operating Income Taxes—Net or account 7450, Provision for Deferred Nonoperating Income Taxes—Net, or account 7640, Provision for Deferred Income Tax Effect of Extraordinary Items—Net in accordance with the account's description and provisions of section 661.13. of this Title.

(D) This account shall be credited with the amount being charged to either account 7250, 7450 or 7640 in accordance with the text of those accounts.

(E) A separate subaccount shall be provided hereunder for operating and nonoperating deferred taxes and also those related to extraordinary items.

(F) The classification of deferred income taxes as current or noncurrent shall follow the classification of the asset or liability that gave rise to the deferred income tax. If there is no related asset or liability, classification shall be based on the expected turnaround of the tax timing differences.

(A) This account shall include the acquisition cost of the company's investment in equity or other securities issued or assumed by affiliated companies, other than securities held in special funds which shall be charged to account 1408, Sinking Funds. The carrying value of the investment (securities) accounted for by the equity method shall be adjusted to recognize the company's share of the earnings or losses and dividends received or receivable of the affiliated company from the date of acquisition. (Note also account 1210, Interest and Dividends Receivable, and account 7310, Dividend Income.)

(B) Declines in value of investments accounted for under the cost method shall be charged to account 4540, Other Capital, if temporary and as a current period loss if permanent. Detail records shall be maintained to reflect unrealized losses for each investment.

(C) Unless otherwise directed by the commission, the company shall apply generally accepted accounting principles in choosing the method of accounting for investments in affiliates.

(D) Amortization of goodwill which represents the difference between acquisition cost and the book value of an investment that is accounted for by the equity method, shall be amortized by monthly charges, on a straight-line basis, to account 7360, Other Nonoperating Income, over the periods estimated to be benefitted, but not exceeding forty years.

(E) A subsidiary record shall be kept identifying separately common stocks, preferred stocks, and long-term debt. Further, the company's records shall identify the securities pledged as collateral for any of the company's long-term debt or short-term loans or to secure performance of contracts.

(F) Amounts due from affiliated companies which are subject to current settlement shall be included in account 1180, Telecommunications Accounts Receivable, account 1190.1, Accounts Receivable from Affliated Companies, or account 1200.1, Notes Receivable from Affliated Companies, as appropriate.

(G) Subsidiary record categories shall be maintained in order that the entity may separately report the amounts contained herein that relate to the equity method and the cost method.

This account shall include investment advances to affiliated companies represented by book accounts only with respect to which it is carried or intended that they shall be either settled by issuance of capital stock or debt; or shall not be subject to current cost settlement.

Amounts due from affiliated companies which are subject to current settlement shall be included in accounts 1180, 1190.1 or 1200.1, as appropriate.

Funds advanced to affiliated companies other than investment advances shall be included in account 1150, Working Cash Advances.

(A) This account shall include the acquisition cost of the company's investment in securities issued or assumed by nonaffiliated companies and individuals, other than securities held in special funds which shall be charged to account 1408, Sinking Funds, and also its investment advances to such parties and special deposits of cash for more than one year from date of deposit.

(B) Declines in value of investments shall be charged to account 4540, Other Capital, if temporary and as a current period loss to account 7360, Other Nonoperating Income, if permanent. Detail records shall be maintained to reflect unrealized losses for each investment.

(C) This account shall also include advances represented by book accounts only with respect to which it is agreed or intended that they shall be either settled by issuance of capital stock or debt; or shall not be subject to current cost settlement.

(D) A subsidiary record shall be kept identifying separately common stocks, preferred stocks, long-term debt, investment advances and special deposits of cash for more than one year from the date of deposit. Further, the company's record shall identify the securities pledged as collateral for any of the company's long-term debt or short-term loans or to secure performance of contracts.

(E) Amounts due from nonaffiliated companies which are subject to current settlement shall be included in account 1180, Telecommunications Accounts Receivable, account 1190.2, Other Accounts Receivabie, or account 1200.2, Other Notes Receivable, as appropriate.

(A) This account shall include the carrier's investment in nonregulated activities accounted for in a separate set of books as provided in section 661.14 of this Title.

(B) The investment in this account shall be maintained by the following subaccounts:

(A) This account shall include the total unamortized balance of debt issuance expense for all classes of outstanding long-term debt. Amounts included in this account shall be amortized monthly and charged to account 7530, Amortization of Debt Issuance Expense. Unamortized debt issuance expense related to reacquired debt shall be disposed of as provided in account 4240, Reacquired Debt.

(B) Debt Issuance expense includes all expenses in connection with the issuance and sale of evidence of debt, such as fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording evidences of debt; costs of engraving and printing bonds, certificates of indebtedness, and other commercial paper; fees paid trustees; specific costs of obtaining governmental authority; fees for legal services; fees and commissions paid underwriters, brokers, and salesmen; fees and expenses of listing on exchanges, and other like costs.

(C) A subsidiary record shall be kept of each issue outstanding.

(A) This account shall include the amount of cash and other assets which are held by trustees or by the company's treasurer in a distinct fund, for the purpose of redeeming outstanding obligations.

(B) Interest or other income arising from funds carried in this account shall generally be charged to this account.

(C) A subsidiary record shall be kept for each sinking fund which shall designate the obligation in support of which the fund was created.

(D) When long-term debt is reacquired and retired (primarily redemptions for sinking fund purposes), the face amount of the debt shall be charged to account 4210, Funded Debt. The gain or loss shall be recognized at the time of retirement by credits or charges to account 7360, Other Nonoperating Income, except that material gains or losses shall be treated as extraordinary. (See accounts 7610, Extraordinary Income Credits, and 7620, Extraordinary Income Charges.)

This account shall include the amount of all noncurrent assets which are not includable in accounts 1401.1 through 1408.

(A) This account shall include such items as the unprovided-for loss in service value of telecommunications plant for extraordinary nonrecurring retirement not considered in depreciation and the cost of extensive replacements of plant normally chargeable to the current period plant specific operations expense accounts (Note also section 663.5. of this Title.)

(B) Charges provided for in paragraph A above shall be included in this account only upon direction or approval from this commission. However, the company's application to this commission for such approval shall give full particulars concerning the property retired, the extensive replacements, the amount chargeable to operating expenses and the period over which in its judgment the amount of such charges should be distributed.

(A) This account shall include all deferred charges not provided for in accounts 1438, Deferred Maintenance and Retirements, and 1500, Other Jurisdictional Assets—Net. Such charges include unaudited amounts and other debit balances in suspense that cannot be cleared and disposed of until additional information is received; the amount, pending determination of loss, of funds on deposit with banks which have failed; revenue, expense, and income items held in suspense (Note also section 661.9); amounts paid for options pending final disposition.

(B) This account shall include the cost of preliminary surveys, plans, investigation, etc., made for construction projects under contemplation. If the projects are carried out, the preliminary costs shall be included in the cost of the plant constructed. If the projects are abandoned, the preliminary costs shall be charged to account 7370, Special Charges.

(C) This account shall include also the cost of evaluations, inventories, and appraisals taken in connection with the acquisition or sale of property. If the property is subsequently acquired, the preliminary costs shall be accounted for as a part of the cost of aquisition, or if it is sold, such costs shall be deducted from the sale price in accounting for the property sold. If purchases or sales are abandoned, the preliminary costs included herein (including options paid, if any) shall be charged to account 7370.

This account shall include the cumulative impact on assets of jurisdictional ratemaking practices which vary from those of this commission. All entries recorded in this account shall be recorded net of any applicable income tax effects and shall be supported by subsidiary records where necessary as provided for in section 661.3 of this Title.

(A) This account shall include the balance of income tax expense resulting from a normalized method of accounting which are paid in advance (more than one year) of the period in which they are chargeable to income.

(B) This account shall be debited and the prescribed income account shall be credited to reflect the offset for the tax effect of certain items which have been included in the determination of taxable income, but which will not be included in the determination of book income until a period in excess of 12 months in the future for regulated, nonregulated operations and extraordinary items transactions which have been included in the determination of taxable income (more than one year).

(C) As items which generated the prepaid income tax are reclassified from long-term to current, the appropriate prepaid income tax shall be reclassified from this account to account 1360, Current Deferred Income Taxes—Dr.

(D) A separate subaccount shall be provided hereunder for operating and nonoperating deferred taxes and also those related to extraordinary items.

(E) The classification of deferred income taxes as current or noncurrent shall follow the classification of the asset or liability that gave rise to the deferred income tax. If there is no related asset or liability, classification shall be based on the expected turnaround of the tax timing difference.

This account shall include the original cost of the investment included in accounts 2111 through 2690.

(A) This account shall include the original cost of property owned other than station apparatus, and held for imminent use in telecommunications service under a definite plan for such use.

(B) The property included in this account shall be classified in separate subaccounts, according to the primary accounts for telecommunications plant in service.

(C) Subsidiary records shall be maintained to show the character of the amounts carried in this account.

(A) This account shall include the original cost of construction projects designed to be completed in one year or less. (Note also section 663.3 of this Title.)

(B) There may be charged directly to the appropriate plant accounts the cost of any construction project which is estimated to be completed and ready for service within two months from the date on which the project was begun. There may also be charged directly to the plant accounts the cost of any construction project for which the gross additions to plant are estimated to amount to less than $100,000 (Class A) or $10,000 (Class B). (See section 661.1 of this Title.)

(C) When the plant includable in this account is not ready for service at the end of one year, the cost of construction of the plant shall be transferred to account 2004, Telecommunications Plant Under Construction—Long Term, without further direction or approval of this commission. If a construction project has been suspended for six months or more, the cost of the plant includable in this account shall be transferred to account 2004 without further direction or approval of this commission. If a project is abandoned, the cost included in this account shall be charged to account 7370, Special Charges.

(D) When any telecommunications plant, the cost of which has been included in this account, is completed ready for service, the cost thereof shall be credited to this account and charged to the appropriate telecommunications plant or other accounts.

(E) Subsidiary record categories shall be maintained in order that the entity may separately report the amounts contained herein that relate to interest bearing and non-interest bearing construction.

(F) Expenditures on research and development projects for construction facilities are to be included in a separate subaccount. Records shall be maintained to show separately each project with complete detail of the nature and purpose of the project together with related costs.

(A) This account shall include the original cost of construction projects designed to be completed in more than one year. (Note also section 663.3. of this Title.)

(B) There may be charged directly to the plant accounts the cost of any construction project for which the gross additions to plant are estimated to amount to less than $100,000 (Class A) or $10,000 (Class B). (See section 661.1 of this Title.)

(C) If a project is abandoned, the cost included in this account shall be charged to account 7370, Special Charges.

(D) When any telecommunications plant, the cost of which has been included in this account, is completed ready for service, the cost thereof shall be credited to this account and charged to the appropriate telecommunications plant or other accounts.

(A) This account shall include amounts for adjustments to telecommunications plant related to plant acquisitions as prescribed in section 663.2. This account shall also include the amount of any adjustments to plant arising from a reconciliation of the company's books with its continuing property records or any other plant adjustments as required by the commission. This account shall be maintained according to the following subaccounts:

(B) 2005.1 Telecommunications Plant Acquisition Adjustment

(C) 2005.2 Other Plant Adjustment

(A) This account shall include the company's investment in regulated property which is not includable in the plant accounts as operating telecommunications plant. It shall include the company's investment in telecommunications property held for sale. (Note also account 1406, Nonregulated Investments.)

(B) Subsidiary records shall be maintained to show the character of the amounts carried in this account.

(A) This account shall include any portion of the plant purchase price that cannot be assigned to specifically identifiable property acquired and such amount should be identified as “goodwill”. Such amounts included in this account shall be amortized to account 7360, Other Nonoperating Income, on a straight line basis over the remaining life of the acquired plant, not to exceed 40 years.

(B) The amounts included in this account shall be maintained to show the nature of each amount.

This account number shall be used to summarize for reporting purposes the contents of accounts 5001 through 5004.

(A) This account shall include monthly revenue derived from the provision of basic local area message services such as flat-rate services and measured services as well as local usage charges not included in basic monthly rates. Included is revenue derived from nonoptional extended area services. Also included is revenue derived from the billed or guaranteed portion of semipublic services and locality mileage charges.

(B) Revenue derived from charges for nonpublished numbers or additional and bold-faced listings in the alphabetical section of the company's telephone directories shall be included in account 5230, Directory Revenue.

(C) Subsidiary record categories shall be maintained in order that the company may separately report the amounts that are contained herein that relate to regional calling plans and local rate plans.

This account shall include total revenue derived from the provision of optional extended area service.

This account shall include message revenue derived from cellular mobile telecommunications systems connected to the public switched network placed between mobile units and other stations within the mobile service area.

(A) This account shall include message revenue derived from general radio telecommunications systems connected to the public switched network placed between mobile units and other stations within the mobile service area, as well as revenue from mobile radio paging, mobile dispatching, and signaling services.

(B) Revenue from private mobile telephone services which do not have access to the public switched network shall be included in account 5264, Other Incidental Regulated Revenue.

This account shall include message revenue (e.g., coin paid) and other revenue derived from public and semipublic telephone services provided within the basic service area.

This account shall include revenue derived from local services that involve dedicated circuits, private switching arrangements, and/or predefined transmission paths, whether virtual or physical, which provide communications between specific locations (e.g.,point-to-point communications). It includes revenue from subvoice grade, voice grade, audio and video program grade, digital transmission and local private network switching as well as the revenue from administrative and operational support services associated with private network services and facilities (e.g., charges for company directed testing, expedited installation, and service restoration priority).

(A) This account shall include revenue derived from tariffed information origination/termination plant. Included is revenue derived from the provision under leasing arrangements of tariffed customer premises equipment (CPE), terminal equipment, station apparatus and large private branch exchanges as well as tariffed nonrecurring charges related solely to station apparatus. Also included are all tariffed charges for customer premises activities and facilities not related solely to station apparatus.

(B) Subsidiary record categories shall be maintained to segregate monthly recurring revenues and nonrecurring revenues such as charges for installation of customer premises wiring or jacks, moves and relocations of premises wiring and premise wiring terminations, locating and repairing trouble faults on the customers side of the demarcation point.

(A) This account shall include revenue from the provision of secondary features which are integrated with the telecommunications network such as call forwarding, call waiting and touchtone line service. Also included is revenue derived from the provision of public announcement and other record message services, directory assistance and other call completion services (excluding operator assisted basic long distance calls), as well as revenue derived from central office related service connection and termination charges, and other nonpremise customer specific charges associated with public network services. This account shall also include local revenue not provided for in other accounts.

(B) Subsidiary record categories shall be maintained in order that the company may report separately the amounts contained herein that relate to secondary features (i.e., call forwarding, call waiting, touchtone service), operator call completion services, nonrecurring charges for central office related installations, moves and changes, recorded announcement services, tax surcharges and Federal transfer surcharges, and other nonbasic local exchange revenues (e.g.,Centrex, Pathway services).

This account shall include the charges and credits resulting from contractual revenue pooling and/or sharing agreements for tariffed local network services only when they are not separately identifiable by local network services revenue accounts in the settlement process. (See also section 665.5 of this Title.) To the extent that the charges and credits resulting from a settlement process can be identified by Local Network Services Revenue account they shall be recorded in the applicable account.

(A) This account number shall be used to summarize for reporting purposes the contents of accounts 5081 through 5084. It shall include revenue derived from the provision of exchange access services to an interexchange carrier or to an end user of telecommunications service beyond the exchange carrier's network.

(B) Accounts 5081 through 5083 are for federally tariffed access charges while account 5084 is to be used for State tariffed access charges.

This account shall contain the federally tariffed monthly flat-rate charge assessed upon end users.

(A) This account shall consist of federally tariffed charges assessed to interexchange carriers for access to local exchange facilities.

(B) Subsidiary record categories shall be maintained in order that the company may separately report the amounts contained herein that relate to limited pay telephone, carrier common line, line termination, local switching, intercept, information, common transport and dedicated transport.

(A) This account shall include all federally tariffed charges assessed for other than end user or switched access charges referred to in account 5081, End User Revenue, and account 5082, Switched Access Revenue.

(B) Subsidiary record categories shall be maintained in order that the company may separately report the amounts contained herein that relate to recurring charges, nonrecurring charges and surcharges.

(A) This account shall include all State tariffed charges assessed by local exchange carriers upon interexchange carriers and end users for access to the local exchange network for intrastate telecommunications.

(B) Billing and collections services provided under exchange access tariffs shall be included in account 5270.1, Interstate Billing and Collection Revenues, or account 5270.2, Intrastate Billing and Collection Revenues.

(C) Subsidiary record categories shall be maintained in order that the company may separately report the amounts contained herein that relate to end user revenues, switched access revenues and special access revenues.

This account shall be used for revenue derived from message services that terminate beyond the basic local service area of the originating wire center and are individually priced. This includes those message services which utilize the public long distance switching network and the basic subscriber access line. (See also account 5111, Long Distance Inward-Only Revenue, and account 5112, Long Distance-Outward Only Revenue.) It also includes those long distance calls placed from mobile and public telephones, as well as any charges for operator assistance or special billing directly related to the completion of a specific call. This account shall also include revenue derived from message services offered under calling plans (discounted long distance) which do not utilize dedicated access lines, as well as those priced at the basic long distance rates where a discounted toll charge is on a per message basis. Any revenue derived from monthly or one-time charges for obtaining calling plan services shall be included in this account. Subsidiary record categories shall be maintained so that revenues from optional calling rate plans may be reported separately.

This account number shall be used to summarize for reporting purposes the contents of accounts 5111 and 5112. It shall include revenue derived from long distance services which permit unidirectional calls to a subscriber from specified service areas or which permit the subscriber to place telephone calls from one location to other specified services areas. It shall also include revenue derived from toll calling plans which embody flat-rate or measured time toll service. (See also account 5100, Long Distance Message Revenue.)

This account shall include the revenue derived from long distance services which permit unidirectional calls to a subscriber from specified services areas (multipoint-to-point service). These calls require the use of dedicated access lines connecting a subscriber's premises and a designated central office. These dedicated access lines are generally separate from those required for the subscriber to place outward calls. The call is billed to the subscriber even though it is generally initiated by the subscriber's customer or correspondent.

This account shall include revenue derived from long distance services which permit the subscriber to place telephone calls from one location to other specified service areas (point-to-multipoint service). These calls are completed without operator assistance and require the use of a dedicated access line. The dedicated access line is generally separate from those required for inward message services and cannot be used to place calls within the basic local service area or calls outside the selected service areas. Outward calls are screened and blocked to determine whether the calls are within an authorized service area.

(A) This account number shall be used to summarize for reporting purposes the contents of accounts 5121 through 5129. It shall include revenue derived from services extending beyond the basic service area that involve dedicated circuits, private switching arrangements, and/or predefined transmission paths, whether virtual or physical, which provide communications between specific locations (e.g.,point-to-point communications).

(B) Service connection charges, termination charges, rearrangements and changes, etc., shall be included in each account to which they apply. Revenue derived from associated administrative and operational support services shall be included in account 5128, Other Long Distance Private Network Revenue.

This account consists of revenue from narrow-band analog private network circuits and facilities furnished exclusively for record forms of communications, such as teletypewriter, teletypesetter, telewriter, ticker, Morse, signaling, remote metering, and supervisory services.

This account consists of revenue from private network circuits and facilities (including multipurpose wide-band) which provide voice grade services for the transmission of analog signals. It includes revenue from services such as voice, data and telephoto communication, as well as remote metering, supervisory control, miscellaneous signaling and channels furnished for the purpose of extending customer-provided communications systems. It includes revenue from the provision of facilities between customer premises and 1) a serving office, 2) a carrier distribution point or 3) an extension distribution channel, except when furnished as a subscriber access line under an unidirectional long distance service (in which case the revenue should be included in account 5111, Long Distance Inward-Only Revenue, or account 5112, Long Distance Outward-Only Revenue.

(A) This account consists of revenue from private network circuits and facilities furnished for audio program transmission purposes, such as radio broadcasting, sound recording (wired music) and loud speaker services. It includes revenue from the provision of facilities for the transmission of analog signals between customer premises and 1) a serving office, 2) a carrier distribution point or 3) an extension distribution channel furnished in connection with such services. It also includes revenue from facilities furnished to carry the audio portion of a television program if furnished under separate audio rates.

(B) If the rate for television program services includes both the picture and sound portion of the transmission, the revenue shall be included in account 5124, Video Program Grade Long Distance Private Network Revenue.

This account consists of revenue from private network circuits and facilities furnished for television program transmission purposes, such as commercial broadcast and educational or private television services. It includes revenue from the provision of facilities for the transmission of analog signals between customer premises and 1) a serving office, 2) a carrier distribution point or 3) an extension distribution channel furnished in connection with such services. It also includes revenue from both the picture and sound portions of transmission for television program service when provided under a combined rate schedule.

This account consists of revenue from the provision of circuits and facilities for the transmission of digital signals only.

This account consists of revenue derived from the provision of common user channels and switching capabilities used for the transmission of telecommunication signals between three or more points in the network. Also included is revenue derived from the provision of basic switching and transfer arrangements used to connect private line channels.

This account consists of revenue from administrative and operation support services associated with private network services and facilities, (e.g., charges for company-directed testing, expedited installation, and service restoration priority). Also included is other private network services revenue not provided for in other accounts.

This account shall include the charges and credits resulting from contractual revenue pooling and/or sharing agreements for tariffed long distance private network services only when they are not identifiable by private network services revenue account in the settlement process. (See also section 665.5 of this Title.) To the extent that the charges and credits resulting from a settlement process can be identified by private network services revenue account, they shall be recorded in the applicable account.

This account shall include long distance revenues not provided for elsewhere.

This account shall include the charges and credits resulting from contractual revenue pooling and/or sharing agreements for tariffed long distance public network services only when they are not identifiable by long distance public network services revenue accounts in the settlement process. (See also section 665.5 of this Title.) To the extent that the charges and credits resulting from a settlement process can be identified by long distance public network services revenue account they shall be recorded in the applicable account.

This account shall include revenue derived from alphabetical and classified sections of directories and shall also include fees paid by other entities for the right to publish the company's directories. Items to be included are:

(A) This account shall include revenues (including taxes when borne by the lessee) derived from the rental or subrental to others of telecommunications plant furnished apart from telecommunications services rendered by the company. It includes revenue from the rent of such items as space in conduit, pole line space for attachments, and any allowance for return on property used in joint operations and shared facilities agreements.

(B) The expense of maintaining and operating the rented property, including depreciation and insurance, shall be included in the appropriate operating expense accounts. Taxes applicable to the rented property shall be included by the owner of the rented property in appropriate tax accounts.

(C) When land or buildings are rented on an incidental basis for nontelecommunications use the rental and expenses are included in account 7360, Other Nonoperating Income.

This account shall include revenue derived from services rendered to other companies under a license agreement, general services contract, or other arrangement providing for the furnishing of general accounting, financial, legal, patent, and other general services associated with the provision of regulated telecommunications services. (See also accounts 5230, 5270.1 and 5270.2.)

This account number shall be used to summarize for reporting purposes the contents of accounts 5261 through 5269.

This account shall include revenue derived from the provision, either under tariff or through contractual arrangements, of special billing information to customers in the form of magnetic tapes, cards or statements. Special billing information provides detail in a format and/or at a level of detail not normally provided in the standard billing rendered for the regulated telephone services utilized by the customer.

This account shall include revenue derived from the performance of customer operations services for others incident to the company's regulated telecommunications operations which are not provided for elsewhere. (See also sections 665 and 661.4[e] of this Title.)

(A) This account shall include revenue derived from contract services (plant maintenance) performed for others incident to the company's regulated telecommunications operations. This includes revenue from the incidental performance of nontariffed operating and maintenance activities for others which are similar in nature to those activities which are performed by the company in operating and maintaining its own telecommunications plant facilities.

(B) The records supporting the entries in this account shall be maintained with sufficient particularity to identify the revenue and associated Plant Specific Operations Expenses related to each undertaking.

(C) This account does not include revenue related to the performance of operation or maintenance activities under a joint operating agreement. (See also account 5240.)

(A) This account shall include the other incidental regulated revenue not provided for in other revenue accounts. Such revenues to be included are:

(B) Any definitely known amounts of losses of revenue collections due to fire or theft, (a) at customers' coin-box stations, (b) at public or semipublic telephone stations, (c) in the possession of collectors enroute to collection offices, (d) on hand at collection offices, and (e) between collection offices and banks shall be charged to subaccount 6728.5, Other General and Administrative, Miscellaneous.

This account shall include the charges and credits resulting from contractual revenue pooling and/or sharing agreements for activities included in the miscellaneous revenue accounts only when they are not identifiable by miscellaneous revenue account in the settlement process. (See also section 665.5 of this Title.) To the extent that the charges and credits resulting from a settlement process can be identified by miscellaneous revenue accounts they shall be recorded in the applicable account.

This account shall include revenues for federally tariffed charges or charges under contractual arrangements by local exchange carriers to interexchange carriers for billing and/or collecting interstate and international revenues. The charges shall include the custom billing process, account collections, billing information services, account establishment and maintenance and account investigation.

This account shall include revenues for State tariffed charges or charges under contractual arrangements by local exchange carriers to interexchange carriers for billing and/or collecting intrastate and international revenues. The charges shall include the custom billing process, account collections, billing information services, account establishment and maintenance and account investigation.

(A) This account shall include revenues derived from a nonregulated activity involving the common or joint use of assets or resources in the provision of regulated and nonregulated products or services which are not provided for elsewhere in this system of accounts.

(B) This account shall be debited and regulated revenue accounts shall be credited at tariffed rates when tariffed services are provided to nonregulated activities that are accounted for as prescribed in section 661.14(c).

(C) Separate subsidiary record categories shall be maintained for each nonregulated revenue item recorded in this account.

This account shall be used to summarize for reporting purposes the contents of accounts 5301 and 5302.

(A) This account shall be charged with amounts concurrently credited to account 1180, Telecommunications Accounts Receivable or account 1181, Accounts Receivable Allowance—Telecommunications when such allowance is maintained.

(B) The following subaccounts shall be maintained:

(C) Subsidiary records shall be maintained for subaccount 5301.2 in order to segregate uncollectible revenue amounts related to nonregulated activities and transactions with affiliates.

(A) This account shall be charged with amounts concurrently credited to account 1190.1, Accounts Receivable From Affiliated Companies or 1190.2, Other Accounts Receivable or account 1191, Accounts Receivable Allowance Other and Affiliated, when such allowance is maintained.

(B) Subsidiary record categories shall be maintained in order to segregate the amounts herein that relate to affiliates and nonaffiliates.

(A) This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6112 through 6116.

(B) For accounts 6112 through 6116.

(A) This account shall include costs of fuel, lubrication, license and inspection fees, washing, repainting, and minor accessories. Also included are the costs of personnel whose principal job is operating motor vehicles, such as chauffeurs and shuttle bus drivers. The costs of users of motor vehicles whose principal job is not the operation of motor vehicles shall be charged to accounts appropriate for the activities performed.

(B) Credits shall be made to this account for amounts transferred to Construction, to accumulated depreciation accounts for cost of removal, and/or to other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours. (See also paragraph 666.6[a][5] of this Title.)

(A) This account shall include such costs as aircraft fuel, flight crews, mechanics and ground crews, licenses and inspection fees, washing, repainting, and minor accessories.

(B) Credits shall be made to this account for amounts transferred to Construction, to accumulated depreciation accounts for cost of removal, and/or to other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours. (See also paragraph 666.6[a][5] of this Title.)

(A) This account shall include such costs as fuel, licenses and inspection fees, washing, repainting, and minor accessories. The costs of operators of this equipment shall be charged to accounts appropriate for the activities performed.

(B) Credits shall be made to this account for amounts transferred to Construction, to accumulated depreciation accounts for cost of removal, and/or to other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours. (See also paragraph 666.6[a][5] of this Title.)

This account shall be charged only with costs incurred in connection with the garage work equipment itself. The costs of using this equipment to maintain motor vehicles, special purpose vehicles, or other work equipment shall be charged to accounts 6112, Motor Vehicle Expense, 6114, Special Purpose Vehicles Expense, or 6116, Other Work Equipment Expense, as appropriate.

(A) This account shall be charged only with costs incurred in connection with this work equipment itself. The costs of operators of this equipment shall be charged to accounts appropriate for the activities performed.

(B) Credits shall be made to this account for amounts transferred to Construction, to accumulated depreciation accounts for cost of removal, and/or to other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours. (See also paragraph 666.6[a][5] of this Title.)

This account number shall be used to summarize for reporting purposes the contents of accounts 6121 through 6124.

(A) This account shall include expenses associated with land and buildings (excluding amortization of leasehold improvements). This account shall also include janitorial service, cleaning supplies, water, sewage, fuel and guard service, and electrical power.

(B) The cost of electrical power used to operate the telecommunications network shall be charged to account 6531, Power Expense, and the cost of separately metered electricity used for operating specific types of equipment, such as computers, shall be charged to the expense account appropriate for such use.

(A) This account shall include expenses associated with furniture and artworks.

(B) Expenses of furniture having a specific function or design, so that the original cost is recorded in the Central Office Asset accounts or other Telephone Plant in Service accounts, shall be recorded in the corresponding Plant Specific Operations Expense accounts.

(A) This account shall be charged only with costs incurred in connection with the office equipment itself. The costs of operators of this equipment shall be charged to accounts appropriate for the activities performed.

(B) Include in this account expenses associated with company internal use communications equipment.

This account shall include costs of personnel whose principal job is the physical operation of general purpose computers and the maintenance of operating systems. This excludes the cost of preparation of input data or the use of outputs which are chargeable to the accounts appropriate for the activities being performed. Also excluded are costs incurred in planning, developing, testing, implementing, and maintaining data bases and application systems for general purpose computers. (See also account 6724, Information Management.) Separately metered electricity for general purpose computers shall also be included in this account.

This account number shall be used to summarize for reporting purposes the contents of accounts 6211 through 6215.

This account shall include expenses associated with analog electronic switching.

This account shall include expenses associated with digital electronic switching.

(A) This account shall include expenses associated with electro-mechanical switching.

(B) Subsidiary record categories shall be maintained as provided in account 2215.

(A) This account shall include expenses associated with account 2220, Operator Systems.

(B) This account shall include the costs of: routine inspection and maintenance of operator systems equipment; maintenance of operator systems equipment in the course of clearing trouble; and other maintenance of such equipment.

(C) This account shall include the cost of rearrangements and changes of operator systems equipment.

(D) This account shall include the cost, including service remuneration charges, of shop repairs and conversions of operator systems central office equipment for reuse; also includes salvage adjustments for credits for material, the salvage value of which cannot be practicably allocated.

This account number shall be used to summarize for reporting purposes the contents of accounts 6231.1 through 6232.

(A) This account shall include expenses associated with account 2231.

(B) The following subaccounts shall be maintained:

(A) This account shall include expenses associated with account 2232.

(B) Subsidiary records shall be kept in order that the company may report separately the amounts contained herein that relate to digital and analog.

This account number shall be used to summarize for reporting purposes the contents of accounts 6311 through 6362.

(A) This account shall include expenses associated with station apparatus. Expenses associated with company internal use communication equipment shall be recorded in account 6123, Office Equipment Expense.

(B) This account shall include maintenance, installation and removal costs of station apparatus offered under state regulated tariff.

(C) Subsidiary records shall be kept to distinguish costs by equipment categories as specified in account 2311.

This account shall include the cost of repairing, disconnecting, and reconnecting customer premises wiring included in account 2321.

(A) This account shall include maintenance expenses associated with large private branch exchanges, until such time as the associated asset is transferred out of the regulated accounts.

(B) Expenses associated with company internal use of communication equipment shall be recorded in account 6123, Office Equipment Expense.

(A) This account shall include expenses associated with public telephone terminal equipment.

(B) The original costs of installing public telephone terminal equipment as well as the installation costs of replacing a public telephone are chargeable to this account. (See account 2351, Public Telephone Terminal Equipment)

This account shall include expenses associated with other terminal equipment.

This account shall be used to summarize for reporting purposes the contents of accounts 6411 through 6441.

This account shall include expenses associated with poles.

(A) This account shall include expenses associated with aerial cable.

(B) Subsidiary record categories shall be maintained as provided in account 2421.

(A) This account shall include expenses associated with underground cable.

(B) Subsidiary record categories shall be maintained as provided in account 2422.

(C) The costs incurred to reconnect, repair, rearrange or replace drop and block wire, including the associated protector, served by either buried cable or underground cable shall be included in account 6423, Buried Cable Expense.

(A) This account shall include expenses associated with buried cable.

(B) Subsidiary record categories shall be maintained as provided in account 2423.

(C) This account shall also include the costs incurred to reconnect, repair, rearrange, or replace drop and block wires, including the associate protector, served either by buried cable or underground cable.

(A) This account shall include expenses associated with submarine cable.

(B) Subsidiary record categories shall be maintained as provided in account 2424.

(A) This account shall include expenses associated with deep sea cable.

(B) Subsidiary record categories shall be maintained as provided in account 2425.

(A) This account shall include expenses associated with intrabuilding network cable.

(B) Subsidiary record categories shall be maintained as provided in account 2426.

(A) This account shall include expenses associated with aerial wire.

(B) Disconnection, reconnection, repair, rearrangement, or replacement of drop and block wires served by aerial wire, and the plant assignment of those wires, shall be charged to account 6421, Aerial Cable Expense.

This account shall include expenses associated with conduit systems.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6511 and 6512.

This account shall include expenses associated with property held for future telecommunications use in account 2002. This account shall not include depreciation or taxes associated with property held for future use. (Note accounts 6562 and 7240.)

(A) This account shall include costs incurred in provisioning material and supplies, including office supplies. This includes receiving and stocking, filling reacquisitions from stock, monitoring and replenishing stock levels, delivery of material, storage, loading or unloading and administering the reuse or refurbishment of material. Also included are adjustments resulting from the annual or more frequent inventory of material and supplies.

(B) Credits shall be made to this account for amounts transferred to construction, plant specific operations expense and/or accumulated depreciation accounts. These costs are to be cleared by adding to the cost of material and supplies a suitable loading charge. (See also section 666.6[a][5] of this Title.)

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6531 through 6535.

This account shall include the cost of electrical power used to operate the telecommunications network.

The cost of power produced for house service purposes shall be charged to account 6121, Land and Building Expense.

This account shall include costs incurred in network administration. This includes such activities as controlling traffic flow, administering traffic measuring and monitoring devices, assigning equipment and load balancing, collecting and summarizing traffic data, administering trunking, and assigning interoffice facilities and circuit layout work.

(A) This account shall include costs incurred in testing telecommunications facilities from a testing facility (test desk or other testing system) to determine the condition of plant on either a routine basis or prior to assignment of the facilities; receiving, recording and analyzing trouble reports; testing to determine the nature and location of reported trouble condition; and dispatching repair persons or otherwise initiating corrective action. (Note also section 666.2[c] of this Title.)

(B) Subsidiary record categories shall be maintained to distinguish between amounts for the handling of trouble reports and amounts for other maintenance expenses.

(A) This account shall include costs incurred in the general administration of plant operations. This includes supervising plant operations (except as specified in section 666.2[c] of this Title); planning, coordinating and monitoring plant operations; and performing staff work such as developing methods and procedures, preparing and conducting training (except on-the-job training) and coordinating safety programs. (Note also section 663.3[b][13] of this Title.)

(B) Credits shall be made to this account for amounts transferred to construction and/or accumulated depreciation accounts. These amounts shall be computed on the basis of direct labor hours. (See section 663.3[b][2] of this Title.)

(A) This account shall include costs incurred in the general engineering of the telecommunications plant which are not directly chargeable to an undertaking or project. This includes developing input to the fundamental planning process, performing preliminary work or advance planning in connection with potential undertakings, and performing special studies of an engineering nature.

(B) Credits shall be made to this account for amounts transferred to construction and/or accumulated depreciation accounts. These amounts shall be computed on the basis of direct labor hours. (See section 663.3[b][2] of this Title.)

(A) This account shall include amounts paid by interexchange carriers or other exchange carriers to another exchange carrier for the provisions of exchange access services and shall be maintained by the following subaccounts:

(B) 6540.1 Interstate Carrier's Carrier Expense

(C) 6540.2 Intrastate Carrier's Carrier Expense

This account shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6561 through 6565.

(A) This account shall include the depreciation expense of capitalized costs in accounts 2112 through 2441, inclusive. The depreciation charges shall be made in accordance with sections 664.1, 664.2, 664.3 and 664.6 of this Title. This account shall also include the amount of amortization of customer premises wiring. (See also paragraph B of account 2321 for amortization program; note accounts 3300 and 7360 for depreciation of nonoperating plant in account 2006.)

(B) Subsidiary record categories shall be maintained to distinguish between the amounts for depreciation expense and the unprovided-for-loss in service value related to extraordinary retirements. (See also account 1438, Deferred Maintenance and Retirements.)

This account shall include the depreciation expense of capitalized costs included in account 2002, Property Held for Future Telecommunications Use. The depreciation charges shall be made in accordance with sections 664.1, 664.2, 664.3 and 664.6 of this Title.

(A) This account shall include only the amortization of costs included in accounts 2681, Capital Leases, and 2682, Leasehold Improvements. The amortization charges shall be made in accordance with sections 664.5 and 664.6 of this Title. (See also paragraph C of account 2690.)

(B) Subsidiary records shall be maintained to distinguish between the costs of leasehold improvements and capital leases; with a further segregation of capital leases by each lease agreement.

This account shall include the amortization of costs included in account 2690, Intangibles. The amortization charges shall be made in accordance with sections 664.5 and 664.6 of this Title. (See also paragraph C of account 2690.)

(A) This account shall include only the amortization of costs included in account 2005, Telecommunications Plant Adjustment.

(B) This account shall also include lump-sum write-offs of amounts of plant acquisition adjustment as provided for in paragraph (B)(2)(c) of account 2005.

(C) Subsidiary records shall be maintained so as to show the character of the amounts contained in this account in order to include separate identification of each amortization and amount.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6611 through 6613.

This account shall include costs incurred in performing administrative activities related to marketing products and services. This includes competitive analysis, product and service identification and specification, test market planning, demand forecasting, product life cycle analysis, pricing analysis, and identification and establishment of distribution channels.

This account shall include costs incurred in selling products and services. This includes determination of individual customer needs, development and presentation of customer proposals, sales order preparation and handling, and preparation of sales records.

This account shall include costs incurred in developing and implementing promotional strategies to stimulate the purchase of products and services. This excludes nonproduct-related advertising, such as corporate image, stock and bond issue and employment advertisements, which shall be included in the appropriate functional accounts.

Nonproduct-related corporate advertising shall be charged to account 6722, External Relations.

Advertising designed to instruct customers in the use of products and services shall be charged to account 6623.1, Customer Services—Service Order Processing and Instruction.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6621 through 6623.3.

This account shall include costs incurred in helping customers place and complete calls, except directory assistance. This includes handling and recording; intercept; quoting rates, time and charges and all other activities involved in the manual handling of calls.

This account shall include those costs associated with responding to inquiries for customer number and classified listings, handling nonpublished number requests, and processing service orders for preparation of directory assistance operator reference source material. Costs incurred to maintain customer and classified listings shall be charged to account 6622.2, Number Services—Directory Publishing.

This account shall include costs incurred in preparing, printing, binding and distributing white and yellow page directories as well as the cost of securing advertisements for directories. It shall also include the cost of directories purchased from other companies.

This account shall be credited with amounts received as salvage on old directories.

This account shall include costs incurred in preparing, changing, and handling contract or service orders, establishing customer accounts, and handling miscellaneous commercial relations with customers. It shall also include costs incurred in instructing customers in the use of products and services. This includes both verbal instruction and the cost of informational advertising and/or production of written materials whose objective is to instruct customers in the most efficient and safe use of products and services.

(A) This account shall be maintained by the following subaccounts:

(B) This account shall include costs incurred in maintaining and billing customer accounts including investigating customer accounts, collecting revenues, reporting receipts, administering collection treatment, and handling contacts with customers regarding adjustments of bills. This account also includes costs associated with receiving and editing of service orders and basic service and equipment billing data and maintaining, correcting and verifying record data. This account shall also include collection shortages. (See account 5264, Other Incidental Regulated Revenue.)

(C) This account shall also include amounts paid by interexchange carriers or other exchange carriers to another exchange carrier for billing and collection services.

This account shall include costs incurred in collecting and reporting pay station receipts. This account shall also include amounts paid to owners or tenants of premises where public and semipublic telephone stations are located, as general compensation for occupancy privileges. (Note section 665.5 and subaccount 6728.5, Other General and Administrative—Miscellaneous.)

This account shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6711 through 6712.

This account shall include costs incurred in formulating corporate policy and in providing overall administration and management. Included are the pay, fees and expenses of boards of directors or similar policy boards and all board-designated officers of the company and their office staffs, e.g., secretaries and staff assistants.

This account shall include costs incurred in developing and evaluating long-term courses of action for the future operations of the company. This includes performing corporate organization and integrated long-range planning, including management studies, options and contingency plans, and economic strategic analysis.

This account shall be used by telephone companies to summarize for reporting purposes the contents of accounts 6721 through 6728.

This account shall include costs incurred in providing accounting and financial services. Accounting services include payroll and disbursements, property accounting, capital recovery, regulatory accounting (revenue requirements, separations, settlements and corollary cost accounting), noncustomer billing, tax accounting, internal and external auditing, capital and operating budget analysis and control, and general accounting (accounting principles and procedures and journals, ledgers and financial reports). Financial services include banking operations, cash management, benefit investment, fund management (including actuarial services), securities management, debt trust administration, corporate financial planning and analysis, and internal cashier services.

(A) This account shall include costs incurred in maintaining relations with government, regulators, other companies and the general public. This includes:

(B) Subsidiary record categories shall be maintained in order that the company may separately report the amounts contained herein that relate to public relations and corporate image advertising.

(A) This account shall include costs incurred in performing personnel administration activities. This includes:

(B) The company shall maintain subsidiary record categories in order that the amounts contained herein relating to benefit administration, labor relations and training activities may be separately reported.

This account shall include costs incurred in planning, developing, testing, implementing and maintaining data bases and application systems for general purpose computers.

Input preparation and output use are chargeable to the benefited activity and not to account 6724. (See also account 6124, General Purpose Computers Expense and account 8310, Software Expense.)

This account shall include costs incurred in providing legal services. This includes conducting and coordinating litigation, providing guidance on regulatory and labor matters, preparing, reviewing and filing patents and contracts and interpreting legislation. Also included are court costs, filing fees, and the costs of outside counsel, depositions, transcripts and witnesses.

This account shall include costs incurred in procuring material and supplies, including office supplies. This includes analyzing and evaluating suppliers' products, selecting appropriate suppliers, negotiating supply contracts, placing purchase orders, expediting and controlling orders placed for material, developing standards for material purchased and administering vendor or user claims.

(A) This account shall include costs incurred in making planned search or critical investigation aimed at discovery of new knowledge. It also includes translating research findings into a plan or design for a new product or process or for a significant improvement to an existing product or process, whether intended for sale or use.

(B) This excludes making routine alterations to existing products, processes, and other ongoing operations even though those alterations may represent improvements.

(A) This account shall include costs incurred in performing general administrative activities not directly charged to the user, and not provided for in other accounts. It excludes the cost of office services, which are to be included in the accounts appropriate for the activities supported. This account shall be maintained according to the following subaccounts:

(B) 6728.1 Accidents and Damages

(C) 6728.2 Insurance

(D) 6728.3 Benefit Payments

(E) 6728.4 Support Services

(F) 6728.5 Miscellaneous

(A) This account shall be charged with amounts concurrently credited to account 1200.1, Notes Receivable and Affiliated Companies, 1200.2, Other Notes Receivable, or to account 1201, Notes Receivable Allowance—Other and Affiliated, when such allowance is maintained.

(B) Subsidiary record categories shall be maintained in order that the entity may separately report the amounts contained herein that relate to affiliates and nonaffiliates.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 7110 through 7160.

(A) This account shall include profits realized from custom work (plant construction) performed for others incident to the company's regulated telecommunications operations. This includes profits from the incidental performance of nontariffed construction activities (including associated engineering and design) for others which are similar in nature to those activities which are performed by the company in constructing its own telecommunications plant facilities.

(B) The records supporting the entries in this account shall be maintained with sufficient particularity to identify separately the revenue and costs associated with each undertaking.

This account shall include a return on investment for the use of regulated property plant and equipment to provide nonregulated products and services.

This account shall include all gains and losses resulting from the exchange of foreign currency. Transaction (realized) gains or losses shall be measured based on the exchange rate in effect on the transactions date. Unrealized gains or losses shall be measured based on the exchange rate in effect at the balance sheet date.

This account shall include gains or losses resulting from the disposition of land or artworks. (Note also section 663.5[d][2] of this Title.)

This account shall be charged or credited, as appropriate, to record the results of transactions, events or circumstances which are of an operational nature, but occur irregularly or are peripheral to the major or central operations of the company and not provided for elsewhere.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 7210 through 7250.

(A) This account shall be charged and account 4320, Unamortized Operating Investment Tax Credits—Net, shall be credited with investment tax credits generated from qualified expenditures related to regulated operations which the company defers rather than recognizes currently in income.

(B) This account shall be credited and account 4320 shall be charged ratably with the amortization of each year's investment tax credits included in account 4320 for investment services for ratemaking purposes. (See also account 7410, Nonoperating Investment Tax Credits—Net.) Such amortization shall be determined in relation to the period of time used for computing book depreciation on the property with respect to which the tax credits relate.

(A) This account shall be charged and account 4070, Income Taxes-Accrued, shall be credited for the amount of Federal Income Taxes for the current period. This account shall also reflect subsequent adjustments to amounts previously charged.

(B) Taxes should be accrued each month on an estimated basis and adjustments made as later data becomes available.

(C) Tax credits, other than investment tax credits, if normalized, shall be recorded consistent with the accounting for investment tax credits and shall be amortized to income as directed by this commission.

(D) No entries shall be made to this account to reflect interperiod tax allocations.

(A) This account shall be charged and account 4070, Income Taxes—Accrued, shall be credited for the amount of State and local income taxes for the current period. This account shall also reflect subsequent adjustments to amounts previously charged.

(B) Taxes should be accrued each month on an estimated basis and adjustments made as later data becomes available.

(C) No entries shall be made to this account to reflect interperiod tax allocations.

(A) This account shall be charged and account 4080, Other Taxes—Accrued, shall be credited for all taxes, other than Federal, State and local income taxes and payroll-related taxes, related to regulated operations applicable to current periods. Among the items includable in this account are property, gross receipts, franchise and capital stock taxes; this account shall also reflect subsequent adjustments to amounts previously charged. (Note section 663.3[b][8].)

(B) Taxes on telephone plant leased to others shall be included in this account by the owner. (Note also paragraph H of this account.)

(C) Special assessments for street and other improvements and special benefit taxes, such as water taxes and the like, shall be included in the operating expense accounts or investment accounts, as may be appropriate.

(D) Discounts allowed for prompt payment of taxes shall be credited to the account to which the taxes are chargeable.

(E) Interest on tax assessments which are not paid when due shall be included in account 7540.1, Other Interest Deductions—Affiliated Companies or account 7540.2, Other Interest Deductions.

(F) Taxes paid by the company under tax-free covenants on indebtedness shall be charged to account 7360, Other Nonoperating Income.

(G) Sales and use taxes shall be accounted for, so far as practicable, as part of the cost of the items to which the taxes relate.

(H) Taxes on rented telecommunications plant which are borne by the lessee shall be credited by the owner to account 5240, Rent Revenue, and shall be charged by the lessee to the appropriate Plant Specific Operations Expense account.

(A) This account shall be charged or credited, as appropriate, with contra entries recorded to the following accounts for operating income tax expense that has been deferred in accordance with section 661.13.

(B) This account shall be maintained by the following subaccounts:

(C) Subsidiary record categories shall be maintained to distinguish between property-and nonproperty-related deferrals so that the company may separately report the amounts contained herein that relate to Federal, State and local income taxes.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 7310 through 7370.

(A) This account shall include dividends on investments in common and preferred stock, which is the property of the company, whether such stock is owned by the company and held in its treasury, or deposited in trust (except in sinking or other funds, see paragraph C of this account), or otherwise controlled.

(B) These accounts shall not include dividends or other returns on securities issued or assumed by the company and held by or for it, whether pledged as collateral, or held in its treasury, in special deposits, or in sinking or other funds.

(C) Dividends on stocks of other companies held in sinking or other funds shall be credited to account 7330, Income from Sinking and Other Funds.

(D) Dividends received and receivable from affiliated companies accounted for on the equity method shall be included in account 1401.1, Investments in Affiliated Companies, as a reduction of the carrying value of the investments.

(A) This account shall include interest on securities, including notes and other evidences of indebtedness, which are the property of the company, whether such securities are owned by the company and held in its treasury, or deposited in trust (except in sinking or other funds, see Note B to this account) or otherwise controlled. It shall also include interest on bank balances, certificates of deposits, open accounts, and other analogous items.

(B) There shall be included in this account for each month the applicable amount requisite to extinguish, during the interval between the date of acquisition and date of maturity, the difference between the purchase price and the par value of securities owned, the income from which is includable in this account. Amounts thus credited or charged shall be concurrently included in the accounts in which the securities are carried. Any such difference remaining unextinguished at the sale or upon the maturity and satisfaction of such securities shall be cleared to account 7360, Other Nonoperating Income.

(C) These accounts shall not include interest or other returns on securities issued or assumed by the company and held by or for it, whether pledged as collateral, or held in its treasury, in special deposits, or in sinking or other funds.

(D) Interest on cash and on securities issued by others shall be included in account 7330, Income from Sinking and Other Funds, when such assets are held in sinking or other funds.

(E) Cash discounts on bills for material purchased shall not be included in this account.

(A) This account shall include the income accrued on cash, securities issued by other companies, and other assets (not including securities issued or assumed by the company) held in sinking and other funds.

(B) There shall be included in this account for each month the applicable amount requisite to extinguish, during the interval between the date of acquisition and the date of maturity, the difference between the purchase price and the par value of securities held in sinking or other funds. Amounts thus credited or charged shall be concurrently included in the accounts in which the securities are carried. Any such differences remaining unextinguished upon the maturity and satisfaction of such securities shall be cleared to account 7360, Other Nonoperating Income.

This account shall be credited with such amounts as are charged to the telecommunications plant accounts for the purpose of recording an allowance for funds used for construction purposes. (Note also section 663.3, subdivision [b][10] of this Title.)

This account shall include gains or losses resulting from the disposition of the following (note also section 663.5[d][2], [e] of this Title).

This account shall include the company's equity in the earnings or losses of affiliated companies accounted for under the equity method.

(A) This account shall include all other items of income and gains or losses from activities not specifically provided for elsewhere.

(B) This account shall include representative items as follows:

This account shall include the following costs that are typically given special regulatory scrutiny for ratemaking purposes. Unless specific justification to the contrary is given, such costs are presumed to be excluded from the cost of service in setting rates. Subsidiary record categories shall be maintained for each of the items enumerated below.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 7410 through 7450.

(A) This account shall be charged and account 4330, Unamortized Nonoperating Investment Tax Credits—Net, shall be credited with investment tax credits generated from qualified expenditures related to other operations which the company has elected to defer rather than recognize currently in income.

(B) This account shall be credited and account 4330 shall be charged with the amortization of each year's investment tax credits included in such accounts relating to amortization of previously deferred investment tax credits of other property or regulated property, the amortization of which does not serve to reduce costs of service (but the unamortized balance does reduce rate base) for ratemaking purposes. Such amortization shall be determined with reference to the period of time used for computing book depreciation on the property with respect to which the tax credits relate.

(A) This account shall be charged and account 4070, Income Taxes Accrued, shall be credited for the amount of nonoperating Federal income taxes for the current period. This account shall also reflect subsequent adjustments to amounts previously charged.

(B) Taxes shall be accrued each month on an estimated basis and adjustments made as later data becomes available.

(C) Companies that adopt the flow-through methods of accounting for investment tax credits shall reduce the calculated provision in this account by the entire amount of the credit realized during the year. Tax credits, other than investment tax credits, if normalized, shall be recorded consistent with the accounting for investment tax credits.

(D) No entries shall be made to this account to reflect interperiod tax allocation.

(A) This account shall be charged and account 4070, Income Taxes— Accrued, shall be credited for the amount of State and local income taxes for the current period. This account shall also reflect subsequent adjustments to amounts previously charged.

(B) Taxes shall be accrued each month on an estimated basis and adjustments made as later data becomes available.

(C) No entries shall be made to this account to reflect interperiod tax allocation.

This account shall be charged and account 4080, Other Taxes—Accrued, shall be credited for all nonoperating taxes, other than Federal, State and local income taxes, and payroll-related taxes for the current period. Among the items includable in this account are property, gross receipts, franchise, capital stock taxes and taxes related to property, plant and equipment in account 2006, Nonoperating Plant. (See also section 663.3[b][8] of this Title.) This account shall also reflect subsequent adjustments to amounts previously charged.

(A) This account shall be charged or credited, as appropriate, with contra entries recorded to the following accounts for nonoperating tax expense that has been deferred in accordance with section 661.13 of this Title.

(B) Subsidiary record categories shall be maintained to distinguish between property-and nonproperty-related deferrals and so that the company may separately report the amounts contained herein that relate to Federal, State and local income taxes.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 7510.1 through 7540.2.

(A) This account shall include the current accruals of interest on all classes of debt the principal of which is includable in account 4210, Funded Debt. It shall also include the interest on funded debt the maturity of which has been extended by specific agreement. (Note also section 663.3[b][10] of this Title.)

(B) This account shall be kept so that the interest on each class of funded debt may be shown separately in the annual reports to this commission.

(C) These accounts shall not include charges for interest on funded debt issued or assumed by the company and held by or for it, whether pledged as collateral or held in its treasury, in special deposits or in sinking or other funds.

(D) Interest expressly provided for and included in the face amount of securities issued shall be charged at the time of issuance to account 1330, Other Prepayments, and cleared to this account as the term expires to which the interest applies.

This account shall include monthly amortization of balances in account 4230, Discount on Long- Term Debt.

This account shall include monthly amortization of balances in account 4220, Premium on Long- Term Debt.

This account shall include the interest portion of each capital lease payment.

This account shall include the monthly amortization of the balances in account 1407, Unamortized Debt Issuance Expense.

This account shall include interest on advances from affiliated companies.

(A) This account shall include all interest deductions not provided for elsewhere. (Note also section 663.3[b][10] of this Title.)

(B) A list of representative items of indebtedness, the interest on which is chargeable to this account, follows:

(C) Interest payable on notes or other evidences of indebtedness maturing serially shall be charged to account 7510.1, Interest on Funded Debt, if any portion of the obligation matures more than one year from date of issue.

This account number shall be used by telephone companies to summarize for reporting purposes the contents of accounts 7610 through 7640.

This account shall be credited with nontypical, noncustomary and infrequently recurring gains which would significantly distort the current year's income computed before such extraordinary items, if reported other than as extraordinary items. Income tax relating to the amounts recorded in this account shall be recorded in account 7630, Current Income Tax Effect of Extraordinary Items—Net, and account 7640, Provision for Deferred Income Tax Effect of Extraordinary Items—Net.

This account shall be debited with nontypical, noncustomary and infrequently recurring losses which would significantly distort the current year's income computed before such extraordinary items, if reported other than as extraordinary items. Income tax relating to the amounts recorded in this account shall be recorded in account 7630, Current Income Tax Effect of Extraordinary Items—Net, and account 7640, Provision for Deferred Income Tax Effect of Extraordinary Items—Net.

This account shall be charged or credited and account 4070, Income Taxes—Accrued, shall be credited or charged for all current income tax effects (Federal, State and local) of items included in accounts 7610, Extraordinary Income Credits, and 7620, Extraordinary Income Charges. The records supporting the entries in this account shall be maintained with sufficient particularity to identify each amount included herein with the extraordinary item to which it is attributable.

This account shall be charged or credited, as appropriate, with a contra amount recorded to account 1510, Noncurrent Deferred Income Taxes—Dr, account 1360, Current Deferred Income Taxes—Dr, account 4350, Noncurrent Deferred Nonoperating Income Taxes—Cr, or account 4110, Current Deferred Nonoperating Income Taxes—Cr, for the income tax effects (Federal, State and local) of items included in accounts 7610, Extraordinary Income Credits, and 7620, Extraordinary Income Charges, that have been deferred in accordance with section 661.13. The records supporting the entries in this account shall be maintained with sufficient particularity to identify each amount included herein with the extraordinary item to which it is attributable.

This account shall include the impact on revenues and expenses of the jurisdictional ratemaking practices which vary from those of this commission. All entries recorded in this account shall be recorded net of the applicable income tax effects and shall be supported by appropriate subsidiary records, where necessary, as provided for in section 661.3[e] of this Title.

(A) This account shall be used by those companies who offer nonregulated activities that do not involve the joint or common use of assets or resources used in the provision of both regulated and nonregulated products and services, and which have not established a separate subsidiary for that purpose.

(B) All revenue and expenses (including taxes) incurred in these nonregulated activities shall be recorded on separate books of account for such operations. Only the net of the total revenues and total expenses shall be recorded in this account, with a contra debit or credit to subaccount 1406.3.

Each complete item of equipment, the original cost of which was charged to the appropriate plant account, such as:

A passenger automobile or truck with or without body; an airplane; a boat or snowmobile; an air compressor, car hoist or gasoline pump; a pole derrick, power winch, earth boring machine or trailer.

A complete building

An entire roof with or without supporting members

A building of irregular shape having more than one roof level may have several isolated roofs, each of which shall be considered an entire roof. In the case of buildings to which lateral extensions have been made, even though having but one roof level, that part of the roof covering an entire section built at one time shall be considered an entire roof.

In addition to the above retirement units, material (i.e., portions of buildings, equipment, fixtures, etc.) installed and retired, and the labor and incidental costs involved in connection with work of the following character, shall be handled through the telephone plant and depreciation reserve accounts.

In order to facilitate the pricing of future retirements, at the time of construction the company should obtain from the building contractor sufficient detail to allow for the breakdown of the total cost of the project in accordance with the required retirement units identified above.

Each complete item of furniture or equipment, the original cost of which was charged to the appropriate plant account, such as:

A desk, chair, table, piano, rug, carpet, or floor covering for one room; a typewriter, portable air conditioning unit or cash register; a distributing frame or switchboard; a CRT display, printer or typewriter control unit

A complete bay and/or functional unit, such as incoming trunk grouping, line links, connectors or marker bay

A complete bay and/or functional unit, such as line frame, line trunk frame, digital transmission interface frame, time switch frame or central processor frame

A complete equipment frame, such as a line-finder frame, line-switch frame, selector frame, connector frame, or repeater frame

A complete equipment frame such as line link, district junctor, district link, office link, incoming link, subscriber sender link, subscriber sender, originating marker, terminating sender link, terminating sender, terminating marker, trunk link, register link, or sender link

A complete frame or bay, operator position and/or functional unit such as trunk unit and service circuit

A satellite including its launch costs

Antenna systems

Earth station facilities—a complete item of radio equipment such as a transmitter, transceiver or receiver

A complete item of radio equipment such as an amplifier, antenna, control equipment, frequency modulation (FM) terminal, modulation and demodulation equipment, patch bay, receiver, transceiver and transmitter

Pair gain equipment such as channel banks, concentrators and subscriber loop carrier equipment including central office terminals and remote terminals

Multiplexing equipment such as carrier terminals, carrier channel banks, modems and translators, except those used with radio facilities. Other circuit equipment such as amplifiers, line repeaters, line signaling equipment, metallic facility terminals and modems

Following is a list of equipment which may be common to one or more of the aforementioned central office asset categories:

The original cost of the cable may be loaded onto the cost of the associated switching and transmission equipment. Otherwise all of the cables in one run used for the same purpose, such as between—

Each complete tool or portable test set, the original cost of which was charged to the telephone plant account, such as a plug remover and attacher, cam aligning fixture, multiple bank resetting gage, or shaft straightening tool, a relay adjusting set, line finder set, or wagon type set

When work of the following character is performed as a special job in a central office or at a multiple or dial private branch exchange for the purpose of improving or changing the type of the equipment, the material installed and retired and the labor and incidental costs involved shall be handled through the telephone plant and depreciation reserve accounts.

In order to facilitate the pricing of future retirements, at the time of installation the company should obtain from the central office contractor sufficient detail to allow for the breakdown of the total cost of the project in accordance with the required retirement units identified above.

None, but each company shall maintain its own list of station apparatus disposition units for account 2311 in accordance with the provisions of that account

None

Units specified under central office assets of this list

None, but each company shall maintain its own list of public telephone terminal equipment disposition units so as to separately identify enclosures and coin, coinless and credit card telephones

None, but each company shall maintain its own list of other terminal equipment retirement units for account 2362 in accordance with the provisions of that account

A pole (i.e., line pole, brace pole, guy stub, or pole forming part A or H fixture), with or without associated anchors, guys, steps, and crossarms placed after January 1, 1971

A crossarm, (i.e., wooden crossarm, guard arm, or cable crossarm including extension arms), with or without braces or other hardware, placed prior to January 1, 1971

A special fixture (i.e., bridge fixture, a tower, or other special river-crossing or long-span fixture) with or without associated anchors, guys, etc.

Two continuous spans or more of cable, with or without associated distribution terminals, suspension strand, clamps, lashing, etc. (The term span shall include a length of cable from a Y splice not located at a pole to a pole or building.)

A section or run of cable, with or without associated elements and parts, as follows:

Any length of cable connected with but not a part of any unit on this list when replaced concurrently with the unit

Terminating cables:

Two continuous spans or more of insulated wire or two continuous spans of one uninsulated wire, with or without associated insulators, transposition brackets, etc.

A case of equipment such as loading coils, building-out condensers, carrier line filters, or auto- transformers

An antenna, complete with or without supports

A section of conduit—

When a manhole is reconstructed, i.e., enlarged or changed in design, the investment representing portions of the manhole removed, whether or not replaced, should be written off to the depreciation reserve account.