Bank guarantees, Managerial Accounting

Assignment Help:

Bank guarantee is one of the facilities which the commercial banks extend in support of their clients in favour of third parties who will be the beneficiaries of the guarantees. In fact, while a bank guarantee is specified, no credit is extended and banks do not part along with any funds. There will be only a guarantee to the beneficiary to create payment in the event of the customer on whose behalf the guarantee is provided, defaults on his commitment. Thus if the customer fails to pay according the terms of the guarantee, the banker providing the guarantee has to pay and claim reimbursement from his client. The banker's liability occurs only if these customers are unsuccessful to pay the beneficiary of the guarantee. That's why bank guarantee limits are termed as not fund limits or non-borrowings limits.


Related Discussions:- Bank guarantees

Time series analysis, Conduct a time series analysis base on the three year...

Conduct a time series analysis base on the three years accounting ratios

Zero-base budgeting , Zero-Base Budgeting Zero-Base Budgeting (ZBB) wa...

Zero-Base Budgeting Zero-Base Budgeting (ZBB) was first developed and introduced for business by Peter A. Pyhrr. From this starting ZBB has been explored and adopted by many o

Optimum cash balance - baumols model, The Baumol Model in 1952 considers ca...

The Baumol Model in 1952 considers cash management complication as same to inventory management problem. For itself the firm attempts to minimize the total cost that is the sum of

Alternative performance measures, Alternative performance measures Ther...

Alternative performance measures There are various measures that can be used to measure performance of a decentralized company. The major ones are: •    Return on Investmen

Inappropriate standards-implementation breakdown, Inappropriate standards (...

Inappropriate standards (or targets): This is a problem arising from deficiencies in planning. If not enough time and resources are devoted to setting accurate standards in th

Journal Entries and T-account, h. Production orders that had cost 450,000 t...

h. Production orders that had cost 450,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 50% above

#, Describe the important role that the corporate level strategy has in rel...

Describe the important role that the corporate level strategy has in relation to the development of the business and functional strategy in a multi -business organization

Incremental budgeting, the suitability of incremental budgeting to a stable...

the suitability of incremental budgeting to a stable and static environment

Stock turnover ratio, opening stock 19000 closing stock 21000 sales 200000 ...

opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio

What is the significance of performance budgeting, Significance of performa...

Significance of performance budgeting Performance budgeting will help the management of companies by introduction of management objective to improve performance. Further it wi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd