What occurs when a business pledges its receivables?

Q: Is it in the best interests of the company to borrow money?

A: Introduction: Obtaining finances in debt is significantly more straightforward for companies than…

Q: How does a bank reconcile between liquidity and profitability.

A: Meaning of liquidity and profitability   Liquidity- is the ability of the bank to meet its…

Q: What is a Creditors Reconciliation ?

A: Reconciliation refers to the various balances in the books we keep, whereas third-party…

Q: Liabilities are obligations of a company to creditor. Select one: True False

A: Liabilities are obligations of a company to creditor. Answer: False Explanation: A liability is a…

Q: s loans money to another party or sells goods or services to another party on account or has…

A: The right answer is all the above

Q: Match the type of bank income (revenue) with the associated source. Revenue received from wealth…

A: Interest Income: It is the main source of Income for banks and financial institution, interest…

Q: What does it mean for CHS to securitize its receivables?

A: Compensating balance: A compensating balance is a minimum amount of cash that must be maintained by…

Q: creditors assess risk when lending funds

A: Assessment of risks when lending funds means evaluating the credit worthiness of the company in…

Q: If a company has accounts receivable from ordinary customers and from related parties, can they…

A: International Financial Reporting Standards are known as the accounting standards which is issued by…

Q: When is the financial components approach to recordingthe transfers of receivables used? When should…

A:

Q: What are the risk-adjusted on-balance-sheet assets of the bank as defined under the Basle Accord?

A: The answer is stated below:

Q: In the deposit function, banks treat interest as income. True False

A: The deposit function function is the creation of deposits through credit extension, either in the…

Q: What are the reasons that a company gives trade discounts?Why are trade discounts not recorded in…

A: A reduction in list or catalog price which is granted by the supplier of goods/services can be…

Q: From a bank's viewpoint, a customer's account in the bank is considered a: a.donation. b.liability.…

A: Bank statement: This is a periodic or monthly statement issued by bank reporting the account summary…

Q: What is the impact of annuity dues in consideration to business matter?

A: Annuity Due: It is the fixed amount of payment that is due immediately at the beginning of each…

Q: effect to asset, liability and owner's equity if the company repays the bank loan

A: Bank loan is the amount borrowed from the bank. Upon repayment of bank loan, the bank loan account…

Q: When should the transfer of receivables be recorded as a sale?

A: When a Note receivable is passed to a Transferor, the transferred value is separated from the…

Q: What is a bank reconciliation statement and how does it work?

A: Bank reconciliation is also known as a passbook. A bank reconciliation statement is a book that…

Q: What is the basic obligation of a depositary bank to its depositor

A: Depositor means a person who deposits money into the bank for the purpose of savings. Depositary…

Q: Who is personal creditor and how the personal creditors can claim their debt from commercial company

A: Creditors are those people or institutions from whom finance is borrowed which is to be paid back.…

Q: Why must a balance sheet always balance? What are the major assets and claims on a commercial bank’s…

A: Balance sheet is called as statement of assets and liabilities. Liabilities represent claims of the…

Q: Why Do Transferors of Receivables Generally Want to Account for the Transfer as a Sale?

A:

Q: From a business's perspective, what is a warranty payment? Is it the same as a warrant payment or…

A: A warrant is a written order by one person instructing or authorizing another person to pay a…

Q: In which transaction deposit directly in the business current bank account as capital contribution

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Q: Why might a business invest cash in temporary investments?

A:

Q: A client pays a firm the outstanding balance on an inv this? O General Journal O Cash Disbursements…

A: Any outstanding balance receivable from client or customer, such account will shown as receivable in…

Q: When do businesses record warranty expense, and why?

A: Warranty:  It is an agreement made by the company to provide guarantee against the defects in the…

Q: Discounting is a transfer or endorsement of a promissory note by the payee in favor of another party…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: Is notice requirement required before filing a case in escheat proceedings for unclaimed balances?…

A: Escheat refers to the right of the government to take ownership of unclaimed property or unclaimed…

Q: Which of the following is a non-depository financial institution? savings bank commercial bank…

A: Financial market consists of many types of financial institutes. There are two types of financial…

Q: When do businesses record warranty expenses, and why?

A: Warranty: It is an agreement made by the company to provide guarantee against the defects in the…

Q: What are the effects on creditors, including secured creditors during voluntary administration?…

A: creditors are those person supply goods or services to the company, provide loan to the company,…

Q: How are refundable deposits and customer advances similar? How do they differ?

A: Refundable Deposits: Refundable deposits are that money in advance offered by the customer. It is a…

Q: When a company borrows money from a bank or sells bonds, it is called

A: When a business organization raises capital through the procurement of loans or by issuing bonds, it…

Q: Which items are reported as liabilities on a bank's balance sheet? bank's balance sheet?

A: Bank's balance sheet is the relationship between the assets, liabilities, and equity capital. The…

Q: When the accounts receivable are sold outright, the accounts receivable have been

A: Accounts receivable is a current asset for the firm which are created against the credit sales made…

Q: If a bill of exchange is discounted and on the date of maturity such bill of exchange was dishonored…

A: Bill of Exchange According to Negotiable instrument Act there are three types of Negotiable…

Q: What is a bank reconciliation?

A: The statement of Bank reconciliation is a report that matches the money balance on an organization's…

Q: Explain the relationship between a payor bank and its customers.

A: Introduction: Payor bank can be defined as a bank which is the drawee of a draft.

Q: What are the criteria for determining whether a sale of receivables has occurred?

A: Receivables: Receivables refer to an amount to be received in future. General classifications of…

Q: Receive cash from customers in settement of debts owed by them

A: Receive cash from customers in settement of debts owed by them.  Required  Journal Entry.

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.