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because there is alot of different types of transactions going in and out the account
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∙ 11y ago
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Is Accounts Receivable a cash equivalents?
Yes, it absolutely is!! It is one of the most liquid assets, so it's definitely a cash equivalent. Happy accounting!
How do you calculate average operating assets?
Average operating assets is the average amount of liquid assets available. This relies very heavily on cash flow which includes accounts payable and accounts receivable. Since these numbers fluctuate, the average is the most meaningful working figure.
Do credit card payments go into your account immediately or do you have to wait to receive payment from the credit card company?
Although the funds you receive from credit card payments are not immediate, take into consideration that you will get paid by the credit card companies much faster than you may get paid by the customer. It can take weeks, or sometimes months after you issue an invoice for a customer to issue you a check. Once you receive the check, you still have to deposit it and wait for it to clear before your funds are available to you. In most cases, once a credit card transaction has been processed, your funds are available in your account within two to three business days. Some banks may hold your money before they release it to you, so be sure to check when setting up your merchant account how long it takes your bank to issue funds. Some banks, such as Wells Fargo, are well-known for making funds available to business owners the day after credit is approved. Another option to consider is accepting debit cards. When paying with a debit card, funds are immediately debited from the customer account and credited to your account. You benefit from this because you do not have to wait for a credit card company to issue your funds. You have a guaranteed transaction, immediate access to your money, and fewer transaction fees.
What is the difference between temporary accounts and permanent accounts?
Temporary accounts are like your revenue, expense, owner's drawing accounts and the income summary. Permanent accounts are like your assets, liability, and most of owner's equity accounts.
Three most important reports generated by the accounts payable department?
Three most important reports generated by the accounts payable department?
Can your childrens' savings accounts be touched when you are filing Chapter 7?
No. Unless there is some proof that the money was placed there to avoid any creditor claims. The way such transaction are determined is when the account was established and the most recent deposit of funds.
What is the investment advantage and disadvantage of money market mutual funds over Cd's and savings accounts?
Money market mutual funds are safe and extremely liquid. There are usually no fees associated with transactions in money market funds. Most brokerage accounts provide access to money market funds which can be used to park funds from stock or bond sales pending reinvestment. The drawbacks to money market funds are that the interest rate paid is only a fraction of a percent and the money held in brokerage accounts is not insured against loss by the FDIC. CDs and savings accounts offered by banks offer higher rates of interest and are insured against loss by the FDIC.
What accounts are available to set up a future fund?
There are a variety of accounts to set up for one's future in terms of investment funds. Investment retirement accounts (or IRAs) are one of the most common and secure means for future fund investments. Mutual funds and CDs are also popular for long term investments.
Can anyone with a brokers license close a real estate transaction?
Usually a title company or a lending institution do this. That is because there are laws regarding funds held in escrow, not to mention the fine points of the law regarding the transaction, that most do not know.
What are liquidated funds?
Liquid funds are used primarily as an alternative to short-term fix deposits. Liquid funds invest with minimal risk (like money market funds). Most funds have a lock-in period of a maximum of three days to protect against procedural (primarily banking) glitches, and offer redemption proceeds within 24 hours. The minimum investment size in a liquid fund varies from Rs. 25,000 to Rs 1 lakh.
Is accounts receivable the least liquid or inventory?
No, cash + cash equivalents is the most liquid account. Liquidity is how quickly an asset can be converted to cash.
How do you use spreadsheets with accounts?
There are a number of Bookkeeping / Accounting programs out in the real world. Most if not all of these programs will output transaction histories in a spreadsheet format.
Whats the most common things banks say about accounts that have insuffient funds?
That the NSF charges will really increase the bank's bottom line.
Which is the most liquid measure of money supply?
M2. M2 consists of M1(coins, bills, travlers checks/checkable deposits), savings accts, money market accounts, demand deposits, and timed deposits. M2 is less narrow than M1, therefore being more liquid/spendable. *The Fed has defined three monetary aggregates M1, M2, and M3. The narrowest definition, M1, includes the transaction deposits of banks and cash in circulation. M2 adds savings accounts, small time deposits at banks, and retail money market funds. M3 adds large time deposits, repurchase agreements, Eurodollars, and institutional money market funds. In March 2006 the Fed discontinued tracking M3 because it does not convey information about economic activity that is not already embodied in M2
what are some investment strategies?
Investment strategies depend on liquid and how safe you want your investment to be at risk. A bank savings account is most liquid and very safe, as are money market accounts, and CDs. At risk investments would include bonds, stocks, mutual funds, and properties but they often can yield a much higher profit (yet there is a much greater risk and no profit is guaranteed).
What are some sources of short term funds?
There are many sources of short term funds. Credit cards, delaying accounts payable, early payment discounts, and establishing a line of credit are ways to allocate funds. Most loans will require varying levels of collateral, personal guarantees, and interest rate expense.
What is the meaning of swift inbanking terms?
Swift is a mechanism for electronically transferring funds between banks, accounts or to settle trades on the stock exchange. It is operated by most major banks
