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Why do banks balance profit and security when making loans?
Banks balance profit and security when making loans to ensure financial stability and minimize risk. By assessing the creditworthiness of borrowers, banks can mitigate potential defaults while still generating interest income. This balance helps maintain the bank's profitability and protects depositors' funds, ultimately supporting the overall health of the banking system. Striking the right balance fosters trust and encourages economic growth through responsible lending practices.
What is Profit-making companies?
A profit making organisation is an organisation which its priority is to make a profit rather than to help the community.
How can the business show a profit and yet be overdrawn at the bank?
A business' profit is absolutely unrelated to its bank balance.
How find net profit in business?
Net Profit is placed in the Credit Side of the Profit & Loss A/c. of the Company and added to the Capital in the Asset Side of the Balance Sheet.
Why does the owner of a business calculate profit?
to reconcile the cash book balance with the balance on the bank statement
Why do banks balance profit and security when making loans?
Banks balance profit and security when making loans to ensure financial stability and minimize risk. By assessing the creditworthiness of borrowers, banks can mitigate potential defaults while still generating interest income. This balance helps maintain the bank's profitability and protects depositors' funds, ultimately supporting the overall health of the banking system. Striking the right balance fosters trust and encourages economic growth through responsible lending practices.
Why there is bank overdraft even though business making profit?
overdraft is included in balance sheet not in income statement which calculates gross and net profit
What is relationship between tally and accounting?
Accounting is making a statement of company's profit and loss,and tally is making a perfect balance between assets and liability
What do you mean by credit balance in profit and loss Ac?
credit balance in profit and loss a/c is loss
What is debit balance of profit and loss account?
Debit balance of Profit & Loss Account represents "Loss"
Explain how the marketing concept can be applied in non profit organisations?
Explain how the marketing concept can be applied in non profit organization?
What is the difference between profit making accounting and not for profit making accounting?
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
Where does Netprofit appear in the Balance Sheet?
Net profit appears on liabilities of balance sheet . Net profit is added to capital.
What is the opposite of a Non-profit organization?
This will explain differences to start a non profit organization with no money at all If your still not sure..... I have placed a useful step by step guide link in my bio that you can check out.
How do non profit making organizations prepare their final account?
By preparing Receipts & Payments Account, Income and Expenditure Account and a Balance sheet.
What is Summarizing of accounting?
summarising involves presenting the already classified data in summarised form.this involve the preparation of balance sheet.
What is the difference tween trial balance before closing and the trial balance after closing?
before we find gross profit ,after we got net profit
