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Credit is primarily a flow concept rather than a stock concept. It represents the ability to borrow money over a certain period, reflecting the ongoing transactions and agreements between lenders and borrowers. While outstanding credit can be measured as a stock at a specific point in time (e.g., total amount of loans), the dynamics of credit involve continuous inflows and outflows over time. Thus, understanding credit requires considering both its stock and flow aspects.
What else can I help you with?
Is an increase in capital stock a debit or credit?
Credit
What is the relationship between a flow concept and a stock concept?
The flow concept is the one in which goods and services move from person to person. In the stock concept, stocks build up or get depleted, they do not flow.
What is the difference between margin trading and credit given by stock brokers?
Credit given by stockbrokers IS margin trading.
How is common stock dividends distributable classified?
Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
What are the advantages and disadvantages of trade credit?
AdvantagesYou can buy the stock and pay later when you have sold the stock and made enough money to pay them backEases the cash flow as you can pay after 28-30 daysDisadvantagesIf you do not pay them back on time you can build up a bad credit historyOnly companies with good credit history can be accepted the trade credit grant
Is common stock a debit or a credit?
Common Stock is a Credit. Closing Stock is a Debit.
What IS STOCK Concept and flow concept?
Stock concept doesn't have a time reference whereas Flow concept has time reference i.e. Stock concept gives the value at an instant of time while flow concept gives the values over a period of time.
Is production a stock and income a flow?
yes, production is a stock concept and income is a flow concept.
Do Common stock has a normal credit balance?
Common Stock normally has a Credit Balance.
Is capital stock a debit or credit?
credit
Stock and flow concept in macroeconomics?
Stock concept doesn't have a time reference whereas Flow concept has time reference i.e. Stock concept gives the value at an instant of time while flow concept gives the values over a period of time.
Is an increase in capital stock a debit or credit?
Credit
What is the relationship between a flow concept and a stock concept?
The flow concept is the one in which goods and services move from person to person. In the stock concept, stocks build up or get depleted, they do not flow.
Is a common stock account increased by credit?
Yes, credits increases the common stock because common stock has credit as a normal balance of account.
How you record a credit sales?
credit your stock for stocks going out of the account debit the debtors for stock going into his account
Is common stock debit or credit on the trial balance?
Credit
In hospitality what is par stock?
concept of per stock in hotel industry
