Found 39 Articles for Trading

There are two types of assets associated with a company - the real assets and the financial assets. Real assets are needed to continue operations and financial assets are non-physical assets that can be converted to cash easily. Real assets are called real because they often have a real form that can be touched or felt. Financial assets on the other hand are mostly found only as records.Real Assets and Financial AssetsReal assets help companies to generate revenue and are important because they have an intrinsic value related to them. The intrinsic value depends on the substance and properties of ... Read More

Account numbers are numbers of accounts. An account number can be composed of letters, numbers or a mix of the two. Account numbers grant access to an individual holding that number. Account numbers are unique numbers such that no two persons can have access to the funds in the account unless it is a joint account.An account number is the primary and important part of the accounting process as all of the accounting is done under the use of the account number.Account numbers can ideally be digital or manual. Digital account numbers are often protected by a password.Individuals can invest ... Read More

A trust account is an account that is managed by a trustee who acts on behalf of a third party. The trustees are selected by the investors and they have to act their best for the best results to the beneficiary. Parents often open trust accounts for their children. The parents act as fiduciary in such cases.Types of Trust AccountsThere are various types of Trust Accounts −Living Trusts − These trusts are revocable when the trust owner is alive. For example, the parents in the example above have full control while they are alive.Testamentary Trust − These trusts are enforceable ... Read More

An acceleration clause is a covenant in loan agreements that are often found in property deals. In such clauses, the lender asks the borrower to repay the entire outstanding amount of the loan if certain conditions are not met. These conditions are usually mutually agreed upon during the negotiation phase of the issuance of the loan.Acceleration clauses protect the lenders in an uncertain market condition and offer them the assurance of getting the revenues back on his or her investments.Acceleration clauses are invoked mostly for payment irregularities but they can also have other reasons. However, all types of acceleration clauses ... Read More

If an entity can produce an equal amount of unit outputs using fewer inputs or if it can produce more outputs in a unit amount of time, it is known as the absolute advantage of the entity. For example, the extraction of crude oil is an absolute advantage of Saudi Arabia as it does not have to spend much like other countries to extract the crude oil.In the case of absolute advantage, the entity can produce a good at a lower cost than other entities. The entities can be an individual, region, company, or country. An entity having an absolute ... Read More

The A-B trust is a trust that has two portions - the A trust and the B trust. It is an estate planning tool that helps married couples avoid heavy taxes. The A-B trust splits into two portions when any one of the spouses dies. In A-B trust, both of the spouses put assets and name a final beneficiary who is anyone other than the spouses. In an A-B trust, the A trust is known as the survivor's trust, while the B trust is known as descendants trust of a bypass trust.How does A-B Trust Work?In an A-B trust, each ... Read More

Created by Athel Percy Andrus in 1958, the American Association of Retired Persons (AARP) is a nonprofit organization that deals with various issues retired persons face in their lives. Taking care of persons aged above 50, AARP has more than 38 million members. Although it is a nonprofit organization some of its parts are for profit.AARP has a strong lobby in Washington DC and its significance can be understood from the fact that it made a profit of $1.9 billion in 2019. A large portion of its profits comes from memberships and services offered to members.Various Affiliates of AARPThe AARP ... Read More

Accounting is a way to record and organize transactions. Accounting is usually done for big companies and corporate houses, but some accountants also serve individuals with accounting. Accounting processes raw financial information and shows them in an organized and systematic manner. It also shows whether a business is making a profit or not.Types of AccountingAccounting can be of the following types −Financial Accounting − These are financial statements that are meant for stakeholders to illustrate how the financial condition of the company is. The financial statement is one of the most important documents that are generated via accounting.Managerial Accounting − ... Read More

Accountability tells managers and employees to be accountable for their actions and duties in their respective roles. It keeps the employees attached to the best standard of output and makes them responsible for the work assigned to them.Organizations are different in terms of structure and hierarchy. Some may be less stringent than others but every organization puts employees in a position in which they have to work following the organizational goals and principles. In such conditions knowing the mission and goals of the company is part of accountability.For a better work-life balance, there must be a trade-off between work and ... Read More

Account Balance may refer to anything of the three belowIn accounting, the residual amount of money in the general ledger is the account balance. Under this agreement, debits and credits are considered. Usually, the net value remaining after deduction credits from debits, the net account balance is obtained.In banking, the current cash remaining in a checking, savings, or other investment accounts is the account balance.In business, the net amount of remaining money payable by a payer to the payee is the account balance.Uses in AccountingIn accounting, the easiest way to get the account balance is by considering the trial balance ... Read More