A cash repayment annuity allows a beneficiary to receive payments from the plan if the annuitant dies. The remaining balance can be paid in one installment or a series of payments. Multiple beneficiaries can be designated, and the asset does not need to go through probate. It is important to compare offerings from different providers […]
Petty cash is a small amount of money kept on hand for expenses like office supplies. It’s useful because any employee can use it, but it needs to be tracked carefully to prevent abuse. It should be kept in a safe place and replenished as needed. Most businesses require a small amount of cash on […]
A Fixed Rate Cash ISA is a tax-exempt savings account offered to UK residents, allowing them to save cash at a fixed interest rate for a set period of time. Other types of ISAs include those holding stocks and shares, and mixed ISAs can contain both cash and shares. Withdrawals before the agreed period may […]
Breakeven cash flow is when a company’s cash inflow matches its cash outflow. It is essential for business success and can be planned through cash flow forecasts. Profitability does not guarantee breakeven cash flow, and it is different from budgeting. Breakeven cash flow is the point in a company’s operations when its cash inflow matches […]
Cash surrender value is the amount of cash that can be obtained when an insurance policy is cancelled, often from a whole life policy. The value can be borrowed against or used as collateral for a loan, but is not the same as the face value of the policy. Sometimes referred to as surrender value […]
Credit money is a type of currency that represents future claims for a valuable item and can be used to buy goods and services. It is made of a material with low intrinsic value and includes notes, bonds, and money market accounts. The concept originated with English goldsmiths who issued paper notes backed by precious […]
Cash settlements are used to fulfill outstanding obligations in futures trading and legal disputes. They may also be offered to customers facing financial problems to pay off outstanding debts. Failure to meet the terms of a cash settlement may result in additional restitution or legal consequences. Cash settlements occur as part of payments related to […]
Cash flow return on investment (CFROI) is a valuation model that considers the current state of liquidity flow, with the yield needing to exceed the company’s internal hurdle rate for the security’s price to be attractive to investors. CFROI has proponents and detractors, with some believing it only identifies factors that determine the market price. […]
To keep a petty cash register, decide whether to use a written record or computer program, create a record with input columns, record each transaction, and save receipts. Keep track of the balance and decide who has access. Save all receipts, even for small amounts. To keep a petty cash register, you will first need […]
To keep a petty cash register, decide whether to use a written or computer record, create a record with input columns, record transactions, and save receipts. Keep track of the balance and decide who has access. Save receipts for all transactions to prove expenses. To keep a petty cash register, you will first need to […]
Cash-on-cash yield is a simple way to calculate the return on investment for an investment without a secondary market. It divides the annual dollar income by the total dollar investment to determine the percentage return. This method may not work for investments with a third party involved. A high percentage return may indicate a good […]
Cash for bond loans allow investors to receive a cash loan by pledging bond issues as collateral. The borrower cannot sell the bonds without permission until the loan is repaid. This type of lending is common with the Federal Reserve Bank in the US and offers benefits for both borrowers and lenders. Cash for bond […]
Quote to cash (QTC) is the process of managing a business from start to finish, beginning with issuing a quote for goods or services and ending with payment received and recorded in accounting records. The process involves creating a quote, converting it into a sales order, fulfilling the order, and billing the customer. Also known […]
Green money, or eco-currency, is used for environmentally friendly activities and can include government funds, private investments, and expenses of companies interested in environmental issues. It can be used for developing alternative energy, funding green work initiatives, carbon trading, and environmental remediation and protection. The rise of corporate responsibility for environmental issues has led to […]
Cash inflow refers to all funds received by an organization from activities such as selling goods and services, investing, and lending. Different organizations rely on different sources of cash inflow, and it is balanced with cash outflow to maintain financial stability. Cash inflow is a term used to describe all the funds received by an […]
Cash registers have remained largely unchanged since their invention in 1883, with a cash drawer for storing currency and coins. Modern versions are electronically powered and have a cylinder lock, but the design remains the same. Cashiers hide larger bills under the drawer for security. Despite many technological advances throughout the 20th century, nearly all […]
The statement of cash flows reports a company’s cash sources and use, with three sections for operating, investing, and financing activities. Financing activities include borrowing, issuing shares, and debt repayment, with cash inflows and outflows reported monthly. Non-cash items are reported separately. The statement of cash flows reports the sources and use of a company’s […]
Cash collection is the process of collecting debts before they become overdue. Companies attempt to negotiate payment arrangements and may issue pre-harvest notices before referring the account to a collection agency or taking legal action. Reputable collection agencies do not charge upfront fees and take a percentage of the debt once it is paid. It […]
Direct deposit cash advances provide quick access to short-term loans, but come with high financing fees ranging from 300 to 1,000 percent. Borrowers must repay the loan through automatic withdrawals from their bank account, and extending the loan can lead to even higher fees and financial hardship. Occasionally, some people run out of money long […]
Cash for Refrigerators offers refunds to those who replace old appliances with newer, more efficient models. The program aims to conserve energy and revitalize the appliance industry, covering a range of household appliances. Unlike Cash for Clunkers, participants do not need to exchange an old appliance to receive a discount. However, some experts are skeptical […]
