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Income that is received in a fund or by company by providing a service or selling a product, but still has to be received. Mutual funds or other pooled assets that build up income over a period of time but only reimburse it out to shareholders once a year are, by meaning, accruing their income. Individual corporations can also accrue income without really getting it, which is the base of the accrual accounting system.
For instance, suppose that a company is projected to complete services for another corporation once per month for six successive months, but that in the terms of the contract, it will not be given monetary payment for these services until the finish of the six-month period. The company doing the services can accrue a percentage of the income gained after every month, even though physical payment will not occur until after the six-month period.
What are a bank's primary reserves? When the Fed sets reserve requirements, what is its primary goal? Vault cash and deposits in the bank's account at the Fed are employed to s
Steps involved in the Process of Securitization The following are the major steps involved: The lender (also called the originator) - in th
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Woody Construction is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.186 million. The fixed asset will be depreciated straight-lin
Yanni and Joanna need some investment advice. Joanna has sold $660,000 worth of Woolworths Limited (WOW) shares that she inherited late last financial year. She has $616,000 remain
Principles of Financial Accounting and Management 1. Define Accounting. Briefly explain the ‘Entity Concept' and ‘Money Measurement Concept' of accounting. 2. What is rectif
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Q. Explain about Cash Forecasting Method ? Under this method an approximate is made of cash receipts and payments for the next period. Estimated cash receipts are added to the
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