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Income that is received in a fund or by company by providing a service or selling a product, but still has to be received. Mutual funds or other pooled assets that build up income over a period of time but only reimburse it out to shareholders once a year are, by meaning, accruing their income. Individual corporations can also accrue income without really getting it, which is the base of the accrual accounting system.
For instance, suppose that a company is projected to complete services for another corporation once per month for six successive months, but that in the terms of the contract, it will not be given monetary payment for these services until the finish of the six-month period. The company doing the services can accrue a percentage of the income gained after every month, even though physical payment will not occur until after the six-month period.
Explain Swap Dealer A swap dealer is a market maker of swaps and predicts a risk position in matching opposite sides of a swap and in making sure that every counterparty fulfil
operating cycle of a vegetable growing business
Mr. Moore will be 35 years at the end of the month and he wishes to retire in 25 years. He plans to invest in a mutual fund earning 7.5 percent annual return compounded monthly an
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Explain the Strategic alliance Two or more organisations agree to work and collaborate informally together however remaining independent from one another. Simila
how to calculate cashflow statements
The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some theorists adva
The data on sales performance in LS Company has shown a important downward trend over the last year. The Marketing and Sales Department is blaming the Finance Department for the po
What does the “weight” refer to in the weighted average cost of capital? The weight considered to in weighted average cost of capital consider the portion of the total capital in
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