financing: duration of repayment is less than one year Medium/Long term: during of repayment is more than one year Short term Finance: Money that is needed to finance activities that are usually going to last less than one year. Bank overdraft An overdraft is an agreement
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fees attached to most of the products that a commercial bank provides‚ and these fees add up to a large part of the average annual profit. Fees are charged for checking accounts‚ debt card use‚ and credit card swipes. There are penalty fees for overdrafts and for late payments on bank-issued credit cards‚ and there are maintenance fees for many types of savings and investment accounts. Multiply each fee by the number of patrons at each bank and you will quickly understand how much is made in this
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nce.html‚ last accessed on April 1‚ 2010) Avoid overcharging of service fees. Banks and credit unions make profit in charging service fees. Bank of America charges $35 for every overdraft above $5. Wachovia charges $22 for the first overdraft in a 12-month period. Then they will collect $35 for each overdraft. Some of the banks and credit unions even charge usage fee for every debit card use at certain stores. Compare with credit card‚ debit card issuers do not inform the
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Part I Question 1 a.) The income statement‚ also called the profit & loss account (P & L)‚ is used to illustrate a company’s revenues and expenses over a particular period of time. It shows the net profit and/or loss for the given period (the difference between the business’ total income and its total costs). It also allows shareholders to see the performance of the business and if it has made an acceptable profit. An income statement is very useful when assessing the performance of John’s Furniture
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ASSIGNMENT GROUP ONE – EVENING SESSION MEMBERS: DWAMENA ALEX S. ERASMUS KORLEY AMPADU RAPHEAL AGYAPONG FRANCIS Assume that Just-in-time stock management is used in accordance with the recommendation of the consultants. Calculate receipts from sales for each of the six months ending 30th June‚ 20x0 Solution: Note: High demand cannot be satisfied with a just in time stock management system. Therefore‚ over calculation for expected sales will be based on medium and
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33.3 Functions of Commercial Banks The functions of a commercial banks are divided into two categories: i) Primary functions‚ and ii) Secondary functions including agency functions. i) Primary functions: The primary functions of a commercial bank include: a) accepting deposits; and b) granting loans and advances; a) Accepting deposits The most important activity of a commercial bank is to mobilise deposits from the public. People who have surplus income and savings find it convenient to
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may waste your money. Not enough money - The money may not be enough. The Loxford Business Unit may use the owners fund if there is enough available however in order for the business to expand successfully the owners fund may not be enough. Overdraft A loan arrangement under which the bank extends credit up to a maximum amount. External Flexible- there when needed‚ Efficient - allows a business to make essential payments and maintains cash flow. Quick – quick and easy to arrange. Useful temporary
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Short-Term Financing There are numerous diverse sources offered for short term financing which is significant for companies to go on with the corporation’s day-to-day procedures. The important sources for short-term financing are overdrafts‚ trade credit‚ and short-term loans. These sources can be used for many reasons. Installment loan is the most confusing financing loan which requires equal payments of the loan life (Block‚ Hirt‚ & Danielsen‚ 2009). A mortgage is an example of installment
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land‚ buildings/plant‚ machinery‚ furniture‚ equipment‚ vehicles‚ trademarks and patents‚ goodwill‚ prepaid expenses‚ debtors (people who owe us money)‚ etc. Liability accounts: Accounts payable‚ salaries and wages payable‚ income taxes‚ bank overdrafts‚ trust accounts‚ accrued expenses‚ sales taxes‚ advance payments (unearned revenue)‚ debt and accrued interest on debt‚ etc. All of the accounts listed in this subsection are payables. Equity accounts: Capital‚ drawings‚ common stock‚ accumulated
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not belong to the specific bank that issued the card‚ so be aware of the extra charges. Much like a credit card charges interest fees‚ if there is no money in your bank account you can accumulate overdraft fees. For example‚ most popular banks charge $35 per item for NFS (non-sufficient funds) and overdraft
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