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What option are proceeds retained by the company and interest at a minimum guaranteed rate is paid to the beneficiary?
The option you are referring to is typically known as a "guaranteed investment" or "participating whole life insurance" policy. In this arrangement, the insurance company retains the proceeds from the policy while providing the beneficiary with a minimum guaranteed interest rate on the funds. This ensures that the beneficiary receives a steady income while the company manages the investment of the principal. Such options are often used for long-term financial planning and wealth accumulation.
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What is margin money on letter of credit?
Margin money on a letter of credit is the part of the interest rate that is over the adjustment-index rate. It is the part that is retained as profit by the one doing the lending.
Can dividends be paid out of retained loss?
No, dividends cannot be paid out of a retained loss. In order to pay out your retained losses, you will need to get a shareholder loan.
Why retained earning does not have explicit cost?
because in reatined earning there is available of oppurtunity costs a beautul examples of Fd and savings as to aquire growing income by getting rate of interest as due to the inflationary and economical parameters. as we all know that the saving is also cost of oppurtunity to modify the explicit cot but not as retained earning vis vis ....
What is retained earnings deficit?
In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.
What is the normal balance of retained earnings?
normal balance of retained earnings: credit.
What do you mean by Retained Interest in off-balance sheet securitized loans?
what does shrect mean
Advantages and disadvantages of retained profits?
advantage:no interest will have to be paid disadvantage:not available for start up businesse's
Why retained profit is important to a business?
retained profit is important to a business because it helps in maintaining the business secrets as the business is using the internal source of finance, is also important because it is a way of saving interest
Which of the following are income tax deductible items to a corporation Common stock dividends preffered stock dvidends retained earnings or Bond interest expenses?
Interest expenses are tax deductible.
What are captured military medical personnel are?
Retained
Why are retained earnings reported as part of shareholders' equity?
Retained earnings is part of shareholders' equity. It is considered part of equity because it represents the profits that are retained in the company to fund growth. If a company would have paid out all past profits as dividend, then total assets (cash) would be lower, and retained earnings would have a zero balance. Because net income is computed after claims of third parties (interest, wages, etc), there is no claim of third parties on profits that are retained. So, retained earnings are not a liability.
Is a Grantor Retained Annuity Trust revocable or irrevocable?
A Grantor Retained Annuity Trust (GRAT) is an irrevocable trust that allows the grantor to transfer assets to beneficiaries while retaining an annuity interest for a specified period. Once the GRAT is established, the terms cannot be changed or revoked by the grantor.
What type of irrevocable trust is created solely to save taxes?
Custodian trust.Credit Shelter trustBypass trust.Grantor-retained interest trust (GRIT).
Do special needs trust have retained earnings?
Special needs trusts do not have retained earnings in the traditional sense, as they are designed to hold and manage assets for the benefit of a person with disabilities without affecting their eligibility for government benefits. Instead of earnings being retained, any income generated by the trust's assets is typically used for the beneficiary's needs or reinvested in accordance with the trust's terms. The primary goal of a special needs trust is to supplement, not supplant, the benefits provided by government programs.
Did Michael Jackson sell the Beatles rights back to Paul McCartney?
No, he sold half of the interest to Sony Music the half he retained now belongs to his estate.
What transaction would increase a liability and decrease equity?
A transaction that would increase a liability and decrease equity is when a company takes out a loan. The loan amount increases the liabilities on the balance sheet, reflecting the obligation to repay the borrowed funds. Simultaneously, if the loan proceeds are used to purchase an asset that does not generate immediate revenue, it can lead to a decrease in equity due to interest expenses or other costs associated with the loan affecting retained earnings.
What are types of source capital?
In terms of the sources, there are two types of capital: interest-bearing debt funds, such as loans, bonds, short-term notes, and interest-bearing payables to trade suppliers; and equity, such as common and preferred stock and the earnings retained.
