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Why can't all the balance of payments accounts be in surplus?
The balance of payments accounts cannot be in surplus because there is always a balance in economics. For example, if you used cash assets to purchase equipment, the equipment account will increase but the cash assets account will decrease.
What does a favorable balance in the cashbook imply?
A favorable balance in the cashbook implies that the cash inflows exceed cash outflows, indicating a positive cash position for the business. This surplus can enhance liquidity, allowing the company to meet its financial obligations, invest in opportunities, or save for future needs. It reflects effective cash management and can be a sign of financial stability.
What does revaluation surplus mean?
Revaluation surplus refers to the increase in the value of an asset when it is revalued to reflect its current fair market value, typically as part of a company's financial reporting. This surplus is recorded in the equity section of the balance sheet under "other comprehensive income" and is not realized until the asset is sold. It reflects changes in market conditions or improvements in the asset's condition. Importantly, a revaluation surplus can enhance a company’s net worth without affecting cash flow.
Does China have a trade surplus or a trade deficit?
surplus Quantify the surplus amount as in March 2011
Which causes the price of grain from the plains to fall?
A surplus in crops
How is the temporary cash surplus managed?
The temporary cash surplus is managed just like any other cash. The relevant transactions should be recorded on how the cash has been used.
Is surplus is a cash accrual?
Of course!!!!!!
What is the excess cash formula used to calculate the amount of surplus funds a company has on hand?
The excess cash formula calculates surplus funds by subtracting the minimum cash balance required from the total cash balance.
Is revaluation surplus included in the cash flow statement?
Revaluation surplus is deducted from net income in case of net cash flow from operations using indirect method as this is not a cash related transaction.
Cash surplus and cash deficit?
Budget for cash planning and control that presents expected cash inflow and outflow for a designated time period
A farm crop raised to be sold for money?
its a cash crop
When a cash surplus exists on your income and expenditure statement you can?
increase your investments
When is surplus of food a good thing?
Having a surplus of food is always a good thing. The excess can be given to the poor, or sold in order to receive cash.
Why can't all the balance of payments accounts be in surplus?
The balance of payments accounts cannot be in surplus because there is always a balance in economics. For example, if you used cash assets to purchase equipment, the equipment account will increase but the cash assets account will decrease.
Did new England's economic prosperity depend on growing surplus cash crops for export?
true
Why do you have banks?
Banks are an integral part of an economy because they keep the cash flow circulating between those who have surplus and those who need cash. Banks accept deposits from people who have surplus cash and disburse that as loans to people who need cash for various reasons. Apart from that they offer checking accounts, savings accounts, debit cards, credit cards, DEMAT/Trading accounts etc.
What are the advantages of merger?
Advantages of merger are as follows. Benefits on account of tax sheilds like carried forward losses or unclaimed depreciation . Restructuring and strengthening the balance sheet . Ivestment of surplus cash . Enhancement of market share . Reduction of competition . Growth with the amalgamation of the competitive advantage of both the firms . Investment of surplus cash . Easy to acfquire economies of scale .
