Tag Archives: accounting

Cash In Hand – Accounting Terminology

Cash In Hand refers to the amount of money that one has in ones possessions at any given point in time. That means it is referring to any money you may have in your pocket, in your drawer, under the mattress, as long as it is liquid and in your possession. Cash in hand is a part of your Current Assets. So if someone came to borrow a dollar from you and you took it out of your purse or wallet, that money was a part of your cash in hand.



Solvency and Insolvency

Two factors that can decide the future of an entity are solvency and insolvency. Solvency refers to the ability of a company or business to pay its debts with cash that it has available. This means that if a company has debts of, for example, one million dollars and has available cash of two million dollars, then the company is said to be solvent because it’s cash to debt ratio is positive. This means that it can take care of its debt obligations without going bankrupt.

When the cash to debt ratio of a company or business is negative, this makes the entity insolvent because it cannot pay its debts with available cash. Thus, insolvency refers to the inability of a company or business to pay its debts with cash that it has available. So, for example, if the entity has available cash of one million dollars and debt obligations totaling two million dollars, then the company is said to be insolvent. When a company is insolvent and at the same time unprofitable, it will lead to bankruptcy.

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Bookkeeping Help For Small Business

There are many small businesses operating worldwide today that try their utmost best to keep their books up to date. This is especially important for the times when the auditors come around to check their books, as all the information about business transactions, salaries, and so on have to be well recorded so as to allow for a smooth audit. Over the years though, many of these small businesses have out-sourced their bookkeeping needs, sometimes to the detriment of their businesses. It is not one of the easiest things finding a good bookkeeper who will not over-charge them or end up messing up their books. All businesses deserve to have the services of a company that charges reasonable bookkeeping fees that won’t break the bank.

Accounting Paradise is the company that offers inexpensive Quickbook Bookkeeping and Payroll Services for small businesses. As a member of the Better Business Bureau and Chamber of Commerce, they guarantee that their business is among the best in the industry and they are ready to help your small business keep proper books. Choosing them to handle your bookkeeping needs is a wise decision because unlike other companies that offer a similar service, they do not enter into long term contracts and their great system is very easy to understand. Coupled with that is their commitment to offering their services at inexpensive prices. To show their large scope of operations even more, they also offer Payroll services and provide discounts to people who purchase Quickbooks from them.

Bookkeeping help for all small businesses is available now at Accounting Paradise. To take advantage of their wonderful service, check their website or give them a call toll free at 888-284-3821. You can even visit their office located at 5348 Vegas Dr.,
Las Vegas, NV 89108. There is no better time than now to start using their services so that your books will always be up to date. Outsource your bookkeeping headaches to them now.

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What Does Fixed Yield Mean?

The expression Fixed Yield means that the yield, or gain, on a money instrument is set at a fixed, or constant, rate. It is often referred to as a Fixed Yield Income which would have the same meaning, only that the money instrument would be income. The rate does not change or alter over the course it runs regardless of economic or other social factors. This strategy helps to keep money instruments in check so that if for some reason expected rates of return are not achieved, there would not be any extra monetary pressure on the company or institution that has enforced the Fixed Yield plan.

For example, a company may hire 20 workers to pack boxes of bananas for export. They are paid a salary of $12,000 per annum with a Fixed Yield of 5% per annum on their incomes. This means that at the end of each financial year, they would be entitled to a fixed salary increase of 5% regardless of how good or bad business is. So we say that they a Fixed Yield Income. Another example of Fixed Yield would be a business investing money into a viable project in tandem with another business. The rate of return is set at a particular figure or percentage, meaning that the gain that is made on their investments is fixed. So they would be getting a Fixed Yield on their investments.

What Are Current Assets?

Current Assets are your assets that are liquid, like cash in the bank, cash on hand, debtors, etc. The term “liquid” is used to represent the fact that these assets are easily accessible and are not tied up in any physical object or product. The formula for Current Assets is

Net Worth (or Total Assets) + Current Liabilities – Fixed Assets

So if your Net Worth is $3,000, Current Liabilities is $500, and Fixed Assets is $1,900, then your Current Assets would be ($3,000+$500)-$1,900=$1,600.

What Are Debentures?

A Debenture is a long-term debt instrument that governments and large companies use to obtain funds, whether on the local or international financial market. It is similar to bonds, the only difference being that the conditions of security are not the same. A debenture is normally unsecured in that there are no liens or pledges on particular assets. It is nonetheless secured by all the properties that have not otherwise been pledged. If bankruptcy should occur, all debenture holders are considered general creditors and as such benefit from it.

Debentures have an advantage in that the person who issues the debentures is left with certain assets untouched which allows them to use these as a means of obtaining finance in the future. In addition, debentures are usually freely transferable by the debenture holder, allowing him to give it to someone else without repercussion.

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