Found 1120 Articles for Banking & Finance

Have you ever been curious about what an SSDI is and who is eligible to receive one? Both the Social Security Disability Insurance (SSDI) program and the Supplemental Security Income (SSI) program are administered by the United States Social Security Administration, one of the world's largest government agencies.Both of these programs provide financial assistance to people who are disabled. Both of these programs may trace their roots back to the original Social Security Act, which was passed in 1935.Read through this article to find out more about SSDI and SSI and how they are different from each other.What is Social ... Read More

A firm is viewed as a collection of resources, or you might say instruments, the objective of which is to create money when discussing the company from a financial perspective. These assets are purchased with money obtained from a combination of two different sources: lenders and owners. The company's income statement and balance sheet both make this very evident. Therefore, it is necessary to have a solid grasp of key financial strategies. The balance sheet, together with the income statement and the cash flow statement, is considered to be the three most important financial statements. Both earnings before interest and ... Read More

In any endeavor designed to generate profits, it is of the utmost importance to ascertain if the effort will be liquid or profitable. Overlooking any of these two factors might result in costly errors in the future. This is something that is frequently disregarded, particularly when a company has a solid reputation for its efficiency. Analysts utilize a variety of indicators to quantify this, including cash flow, EBIT (earnings before interest and taxes), and EBITDA (Earnings before interest, taxes, depreciation, and amortization). But what exactly differentiates these measurements from one another?What is EBIT?EBIT, which is an abbreviation for "Earnings Before ... Read More

Options trading is a fantastic place to get started if you are looking for an investment plan that has the potential to generate significant profits while still involving a low level of risk. Even though options trading might be a little challenging for novices, there is a wide range of tools and tactics accessible out there that even newbie investors can start to profit from, resulting in good profits month after month.Spreads are some of the easiest investment options a trader can put into action and serve as the fundamental building blocks for a number of other investment strategies for ... Read More

A bank is a component of the financial system that issues demand deposits while also taking public deposits. Both direct and indirect lending activities can be carried out through capital markets. Banks are heavily regulated in most nations due to their significance to financial stability.While they enable consumers to borrow money, invest, save for the future, and manage smaller chores (such as making deposits and paying bills), banks and the financial services sector are crucial to the economy.Depending on the inclination and financial condition, there are numerous distinct types of banks.What are Commercial Banks?A financial institution that accepts deposits, provides ... Read More

The means of trade that we use is money. In the past, items were sometimes traded through the use of other methods, such as bartering, precious metals, or silver and gold. Even if they continue to be utilized depending on the culture, money is still the primary means of transaction. The majority of people view money as nothing more than money. However, different parts of the world have quite different conceptions of what money is. Having said that, various nations have varying standards for what constitutes broad money and narrow money. But what exactly differentiates the two from one another? ... Read More

For a business to continue running with granting credit, it must continuously monitor the accounts receivables so that there is no laxity in the process of credit collection. There are two traditional methods that are used to monitor accounts receivables. These areAverage Collection PeriodAging Schedule.As these methods have some limitations, analysts now use the collection experience matrix method to judge the accounts receivables efficiency of a firm.Average Collection Period (ACP)The Average Collection Period Formula (ACP) is –$$\mathrm{ACP \:= \:\frac{Debtors \:\times \:360}{Credit \: sales}}$$The average collection period calculated with this formula is compared with the real collection period of the firm ... Read More

The notable drawback of traditional methods of monitoring receivables is that they are dependent on aggregated data. Moreover, methods such as Average Collection Period (ACP) and aging schedule fail to relate outstanding accounts receivables of a certain period with the credit sales in that particular period of time.Therefore, two professionals can arrive at two different results when they aggregate sales and receivables data differently. How can this anomaly be resolved? The best way to remove such a problem is to use disaggregated data for analyzing collection experiences. The key here is to relate receivables to sales data in the same ... Read More

What is Discriminant Analysis?Apart from using a numerical scoring model, a firm may use discriminant analysis in credit scoring models.Discriminant analyses for credit scoring are divided into two sections. They are as follows −Simple Discriminant AnalysisMultiple Discriminant Analysis Models.Discriminant models are objective methods of finding the differences between good and bad customers. By applying discriminant analysis, the lending firms can discriminate good credit customers from the bad ones.Simple Discriminant Analysis ModelAs mentioned above, the simple discriminant analysis model is an objective method to separate the bad credit customers from the good ones. The lenders often look for a solid method ... Read More

Aging ScheduleThe aging schedule is a summarized list of accounts receivable broken down into different time periods that rank the receivables depending on days until due or past due. The aging schedule is generally divided into 30 days’ categories so that the current items are listed in the 0–30 days’ category, moderately overdue items are listed in the 31–60 days’ category and very overdue are listed in other categories.ExampleCustomerTotal DueCurrent due (under 30 Days)1-30 days past due31-60 days past due61-90 days past dueMore than 90 daysCompany ABC100, 00080, 00020, 000   Company XYZ70, 000  30, 00030, 00010, 000Company AXY25, 00020, 000 5000  Total195, 000100, 00020, ... Read More