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Financial Terms | |
Balance of Payments Accounts |
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Definition of Balance of Payments AccountsBalance of Payments AccountsA statement of a country's transactions with other countries.
Related Terms:Capital AccountThat part of the balance of payments accounts that records demands for and supplies of a currency arising from purchases or sales of assets. Current AccountThat part of the balance of payments accounts that records demands for and supplies of a currency arising from activities that affect current income, namely imports, exports, investment income payments such as interest and dividends, and transfers such as gifts, pensions, and foreign aid. Official Settlements AccountAn account within the balance of payments accounts showing the change in a country's official foreign exchange reserves. It is used to measure a balance of payments deficit or surplus. Accounts‘Buckets’ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements. Accounts payableMoney owed to suppliers. ACCOUNTS PAYABLEAmounts a company owes to creditors. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually accounts payable involves the receipt of an invoice from the company providing the services or goods. ![]() accounts payableShort-term, non-interest-bearing liabilities of a business Accounts payableAcurrent liability on the balance sheet, representing short-term obligations Accounts PayableAmounts due to vendors for purchases on open account, that is, not evidenced Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance Accounts receivableMoney owed by customers. ACCOUNTS RECEIVABLEAmounts owed to a company by customers that it sold to on credit. Total accounts receivable are usually reduced by an allowance for doubtful accounts. Accounts receivableAmounts owed to the company, generally for sales that it has made. accounts receivableShort-term, non-interest-bearing debts owed to a Accounts receivableA current asset on the balance sheet, representing short-term Accounts ReceivableAmounts due from customers for sales on open account, not evidenced Accounts ReceivableMoney owed to a business for merchandise or services sold on open account. Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how accounts receivable turnover ratioA ratio computed by dividing annual Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. Balance of Merchandise TradeThe difference between exports and imports of goods. Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign exchange market. Balance of tradeNet flow of goods (exports minus imports) between countries. Balance of TradeSee balance of merchandise trade. Balance sheetAlso called the statement of financial condition, it is a summary of the assets, liabilities, and BALANCE SHEETA “snapshot” statement that freezes a company on a particular day, like the last day of the year, and shows the balances in its asset, liability, and stockholders’ equity accounts. It’s governed by the formula: Balance SheetA financial statement showing the financial position of a business – its assets, liabilities and Balance SheetOne of the basic financial statements; it lists the assets, liabilities, and equity accounts of the company. The balance Sheet is prepared using the balances at the end of a specific day. balance sheetA term often used instead of the more formal and correct Balance sheetA report that summarizes all assets, liabilities, and equity for a company balance sheetFinancial statement that shows the value of the Balance SheetA financial report showing the status of a company's assets, liabilities, and owners' equity on a given date. Balance sheet exposureSee:accounting exposure. Balance sheet identityTotal Assets = Total Liabilities + Total Stockholders' Equity Balanced-Budget MultiplierThe multiplier associated with a change in government spending financed by an equal change in taxes. Balanced fundAn investment company that invests in stocks and bonds. The same as a balanced mutual fund. Balanced mutual fundThis is a fund that buys common stock, preferred stock and bonds. The same as a Balanced ScorecardA system of non-financial performance measurement that links innovation, customer and process measures to financial performance. balanced scorecard (BSC)an approach to performance Basic balanceIn a balance of payments, the basic balance is the net balance of the combination of the current Chart of accountsA listing of all accounts used in the general ledger, usually sorted in Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value common-size balance sheetbalance sheet that presents items as a percentage of total assets. Compensating balanceAn excess balance that is left in a bank to provide indirect compensation for loans Coupon paymentsA bond's interest payments. Declining balanceAn accelerated depreciation method that calculates depreciation each year by applying a fixed rate to the asset’s book (cost–accumulated depreciation) value. Depreciation stops when the asset’s book value reaches its salvage value. Declining-balanceA method of depreciation. Discounting of Accounts ReceivableShort-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable. Double-declining-balance depreciationMethod of accelerated depreciation. Interest paymentsContractual debt payments based on the coupon rate of interest and the principal amount. IRA/Keogh accountsSpecial accounts where you can save and invest, and the taxes are deferred until money Lag response of prepaymentsThere is typically a lag of about three months between the time the weighted market-value balance sheetFinancial statement that uses the market value of all assets and liabilities. National Income and Product AccountsThe national accounting system that records economic activity such as GDP and related measures. Net cash balanceBeginning cash balance plus cash receipts minus cash disbursements. Off-balance-sheet financingFinancing that is not shown as a liability in a company's balance sheet. On-hand balanceThe quantity of inventory currently in stock, based on inventory Payments nettingReducing fund transfers between affiliates to only a netted amount. Netting can be done on Payments patternescribes the lagged collection pattern of receivables, for instance the probability that a Permanent accountsThe accounts found on the balance Sheet; these account balances are carried forward for the lifetime of the company. Prepaymentspayments made in excess of scheduled mortgage principal repayments. Progress PaymentsPeriodic payments to a supplier, contractor or subcontractor for work satisfactorily performed to date. Projected available balanceThe future planned balance of an inventory item, Provision for Doubtful AccountsAn operating expense recorded when the allowance for Receivables balance fractionsThe percentage of a month's sales that remain uncollected (and part of Remaining principal balanceThe amount of principal dollars remaining to be paid under the mortgage as of Target cash balanceOptimal amount of cash for a firm to hold, considering the trade-off between the Temporary accountsThe accounts found on the Income Statement and the Statement of Retained Earnings; these accounts are reduced to zero at the end of every accounting period. Trial balanceA listing of all the accounts and their balances on a specified day. Unbilled Accounts ReceivableRevenue recognized under the percentage-of-completion zero-balance accountRegional bank account to which just enough funds are transferred daily to pay each day’s bills. Zero-balance account (ZBA)A checking account in which zero balance is maintained by transfers of funds Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |