This is where the business sells its accounts receivables to a business that specialises in debt collection. The debts will be put at a reduced amount by the factoring business, but the advantage is that it provides an injection of cash into the business with funds to continue operating and stops the problem turning into a solvency issue. Woolworths began using a factoring company to collect its accounts receivable at the start of 2015. This is a low-risk funding option for Woolworths and allows the business to meet its financial objective of liquidity. It saves the business time and effort involved in chasing debtors and allows management to focus on the prime function of grocery retailing, although it costs Woolworths a percentage of repayments to do this.
ACC 548 Week 5 Learning Team Assignment Reporting Requirements M to purchase http://allmysolution.com/ACC-548_c119.htm Product Description One issue in accounting is the qualifications of an accountant when working for a client. It is expected that a CPA will not engage in an assignment without proper qualifications. Your firm has the ability to bid on two projects: the first is engagement and examination work—not consulting or audit—for a small county hospital. The second is work for a private, not-for-profit nursing
Like the partnerships the S-corporations basically have no federal income taxes. S-corporations owners are taxed on their portion of earnings. The popularity of S-corporations fluctuate with the income tax law. Sometimes the corporation taxes are more than the individual and vice versa. Some of the similarities to a closely held corporation is each shareholder's liability is limited to the amount of their investment.
The organization may use the information in the cash flow report to assess the effectiveness of operations. Cash flow from funding activities. The cash flow statement is one of the most important, but often overlooked, of a firm’s financial statements. In its entirety, it lets an individual whether he or she is an analyst, customer, credit provider, or auditor learn the sources and uses of a firm’s cash. Without proper cash management and regardless of how fast a firm’s sales or reported profits on the income statement are growing, a firm cannot survive without carefully ensuring that it takes in more cash than it sends out the door.
Cash disbursements show where you must spend some of your money, such as on employee pay, raw materials purchases, and manufacturing overhead costs Financing shows expected payments and the repayments of the borrowed funds plus interest. (Kimmel, 2009, p. 353). If there is a cash deficiency during any period, the company will need to borrow funds. If there is cash excess during any budgeted period, funds borrowed in previous periods can be repaid or the excess funds can be invested. 2) Why is a Cash Budget so vital to a company?
If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost. Adversely, if the stock is retired, Alcoa
This week we learned that companies are required to prepare a statement of cash flows because it gives a more accurate snapshot of the actual cash flow of a company. Financial statements give an overall picture of how much revenue a company is reporting, but high revenue does not guarantee that the company has the ability to pay its bills. The statement of cash flows is a tool designed to help external users make sound economic decisions about the company. The statement of cash flows is divided into three sections: 1) operating activities, 2) investing activities, and financing activities. The operating activities section analyzes the company's flow of cash as it relates to a net loss or net income.
In addition, some post offices offer non-postal services such as passport applications and other government forms, car tax purchase, money orders, and banking services. Source: http://en.wikipedia.org/wiki/Post_office Business Activity Local business is a business which is located around your area. These types of business are normally owned by sole traders because they don’t have as much money. An example of local businesses would be a corner shop. National business is a business which is located in the whole country.
The discount rate, in turn, directly affects the rates at which banks can lend money to its customers. When the Fed lowers the rate, it tends to have the effect of increasing consumer demand for money, since consumers are able to borrow money from banks at lower rates. The second way is by adjusting reserve ratios. The reserve ratio is the amount of cash banks most keep on hand in relation to the amount of money they loan out to consumers. When the Fed lowers the reserve ratio, it means that banks are able to loan out more money to its customers since they need to keep fewer dollars in cash reserves relative to the amount of money they lend out.
The benefits that one receives from Social Security are typically based on the amount of taxes that the person has paid over time; however a disproportionate amount is given to those earning a lower income since they need the money more. The purpose of assigning citizens a Social Security Number is to keep track of the money that each person puts into the system and each person can receive their entitled benefits upon retirement (or disability) (What is Social Security?). There is much debate over the dependability of the Social Security program and how long the