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for Automated Teller Machine, ATM has become an increasingly popular banking outlet to withdraw cash, deposit cheques and check the latest transactions and account balance. In 1960, a man named Luther Geroge Simijan invented Bankography, a machine that allowed customers to deposit cash and check the transaction. Then the first ATM was set up in 1967 by Barclays Bank in Enfield. James Goodfellow in
Abandonment value is the equivalent cash value of a project if it is liquidated immediately after reducing all debts which need to be repaid. Description: Abandonment value is also known as liquidation value of an asset. The general rule for deciding to discontinue the product is that if the product’s salvage value is greater than the net present value (NPV) of its expected cash flows, the proj
Abnormal rate of return or ‘alpha’ is the return generated by a given stock or portfolio over a period of time which is higher than the return generated by its benchmark or the expected rate of return. It is a measure of performance on a risk-adjusted basis. Description: The abnormal rate of return on a security or a portfolio is different from the expected rate of return. It is the return gene
at Is the definition of an Accountant?A professional who conducts accounting activities including accounting research, audit, or analysis of financial statements is known as an accountant. Accountants work for accounting companies or in the internal accounting departments of large corporations. They are responsible for ensuring that companies maintain accurate records of their income and expenditu
counting, which is often just called “accounting,” is the process of measuring, processing, and sharing financial and other information about businesses and corporations.What is accounting?Accounting is the processor keeping the accounting books of the financial transactions of the company. The accountants summarize the transactions in the form of journal entries. These entries are used in bookkee
QUATIONAccounting Equation DefinitionThe accounting equation, also known as the basic accounting equation or balance sheet equation, is a statement that a company’s total asset is the sum of its liability and its shareholder’s equity. It ensures that the balance sheet is balanced (i.e, for every debit, there is a corresponding credit)The accounting equation is the basis of the double-entry account
When a company purchases goods on credit which needs to be paid back in a short period of time, it is known as Accounts Payable. It is treated as a liability and comes under the head ‘current liabilities’. Accounts Payable is a short-term debt payment which needs to be paid to avoid default. Description: Accounts Payable is a liability due to a particular creditor when it order goods or service
: Accounts Receivable (AR) is the proceeds or payment which the company will receive from its customers who have purchased its goods & services on credit. Usually the credit period is short ranging from few days to months or in some cases maybe a year. Description: The word receivable refers to the payment not being realised. This means that the company must have extended a credit line to its c
When transactions are recorded in the books of accounts as they occur even if the payment for that particular product or service has not been received or made, it is known as accrual based accounting. This method is more appropriate in assessing the health of the organisation in financial terms. Description: To understand accrual accounting, let’s first understand what we mean when we say the w
ding to arrears definition, it is a financial term in relation to the status of payments related to their due date. Generally, the term is used for describing the responsibility or liability that was not paid past its due date. Hence, arrears mean a payment that is overdue.What is Arrears?Arrears is a commercial term meaning a payment that is past its due date. In case payments are missed one or m
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