The current account consists of visible trade (export and import of goods),invisible trade(export and import of services), unilateral transfers, and investment income (income from factors such as land or foreign shares). The credit and debit of foreign exchange from these transactions are also re...
Current transfers are transactions where the originator does not receive a “quid pro quo” in return; this absence of economic value on one side is represented in thebalance of paymentsby one-sided transactions called transfers. Current transfers affect the current account and are separate and dis...
It includes details about the date, amount, type of transaction, and account involved in each transaction. What are intercompany transactions? Intercompany transactions are transactions between two entities under common ownership. These transactions may be monetary, such as a payment from one company ...
What Is Working Capital? Definition and Guide What Is a Bill of Lading? Definition and Guide What Is Accrual Accounting FAQ What is meant by accrual accounting? Accrual accounting is an accounting method that records transactions when they occur rather than when payments are made or received. Thi...
should have a philosophy of stock purchasing, including a strategy for either long term or short term investment. It’s also helpful to know about how to keep track of trades and profits, specifically the “cost basis” for stock sales, in order to be able to includecapital gainson tax ...
A financial transaction is any change in the finances of at least two businesses or people. There are three types of financial...
Capital accounts activity includes par value of the common stock, paid-in capital, and treasury share transactions. What are the Steps in Account Reconciliation? The cash account is reconciled to bank statements rather than a subsidiary journal (sub-ledger) for that account. Accounting software an...
The accounting and bookkeeping term accruals refers to adjustments that must be made before a company’s financial statements are issued. Accruals involve the following types of business transactions: expenses, losses, and liabilities that have been incurred but are not yet recorded in the accounts,...
Ahigh-yield savings account (HYSA)is a savings account that earns a higher-than-average interest rate. While the average return on a traditional savings account is just0.43%, some HYSAs offer rates over 4%. Most HYSAs are offered by online banks, fintechs or credit unions, but somebrick...
Definition of T-Account A T-account is a visual aid used to depict a general ledger account. The account title is written above the horizontal part of the “T”. On the left-side of the vertical line, the debit amounts are shown. On the right-side the credit amounts are shown. ...