|Balance of payments|
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Definition of Balance of payments
Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions
Balance of Payments
The difference between the demand for and supply of a country's currency on the foreign exchange market.
Balance of Payments Accounts
A statement of a country's transactions with other countries.
In a balance of payments, the basic balance is the net balance of the combination of the current
In the balance of payments, counterpart items are analogous to unrequited transfers in the
Net errors and omissions
In balance of payments accounting, net errors and omissions record the statistical
In the balance of payments, other capital is a residual category that groups all the capital
Items in the current account of the balance of payments of a country's accounting books
That part of the balance of payments accounts that records demands for and supplies of a currency arising from purchases or sales of assets.
That 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 Account
An 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.
Central bank action offsetting money supply changes automatically generated by a balance of payments surplus or deficit under a fixed exchange rate system.
Balance of trade
Net flow of goods (exports minus imports) between countries.
Also called the statement of financial condition, it is a summary of the assets, liabilities, and
Balance sheet exposure
Balance sheet identity
Total Assets = Total Liabilities + Total Stockholders' Equity
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a
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
An excess balance that is left in a bank to provide indirect compensation for loans
A bond's interest payments.
Method of accelerated depreciation.
Contractual debt payments based on the coupon rate of interest and the principal amount.
Lag response of prepayments
There is typically a lag of about three months between the time the weighted
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
Financing that is not shown as a liability in a company's balance sheet.
Reducing fund transfers between affiliates to only a netted amount. Netting can be done on
escribes the lagged collection pattern of receivables, for instance the probability that a
payments made in excess of scheduled mortgage principal repayments.
Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of
Remaining principal balance
The amount of principal dollars remaining to be paid under the mortgage as of
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the
Zero-balance account (ZBA)
A checking account in which zero balance is maintained by transfers of funds
A “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:
An 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.
A system of non-financial performance measurement that links innovation, customer and process measures to financial performance.
A financial statement showing the financial position of a business – its assets, liabilities and
One 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.
A method of depreciation.
A listing of all the accounts and their balances on a specified day.
A term often used instead of the more formal and correct
balanced scorecard (BSC)
an approach to performance
A report that summarizes all assets, liabilities, and equity for a company
Financial statement that shows the value of the
common-size balance sheet
balance sheet that presents items as a percentage of total assets.
market-value balance sheet
Financial statement that uses the market value of all assets and liabilities.
Regional bank account to which just enough funds are transferred daily to pay each day’s bills.
Balance of Merchandise Trade
The difference between exports and imports of goods.
Balance of Trade
See balance of merchandise trade.
The multiplier associated with a change in government spending financed by an equal change in taxes.
The quantity of inventory currently in stock, based on inventory
Projected available balance
The future planned balance of an inventory item,
A financial report showing the status of a company's assets, liabilities, and owners' equity on a given date.
Periodic payments to a supplier, contractor or subcontractor for work satisfactorily performed to date.
Graduated-payment mortgages (GPMs)
A type of stepped-payment loan in which the borrower's payments
A loan repayment schedule in which the outstanding principal balance of the loan
Adjustment mechanism under the classical gold standard whereby
negative cash flow
The cash flow from the operating activities of a business
Registered Retirement Savings Plan (Canada)
Commonly referred to as an RRSP, this is a tax sheltered and tax deferred savings plan recognized by the Federal and Provincial tax authorities, whereby deposits are fully tax deductable in the year of deposit and fully taxable in the year of receipt. The ability to defer taxes on RRSP earnings allows one to save much faster than is ordinarily possible. The new rules which apply to RRSP's are that the holder of such a plan must convert it into income by the end of the year in which the holder turns age 69. The choices for conversion are to simply cash it in an pay full tax in the year of receipt, convert it to a RRIF and take a varying stream of income, paying tax on the amount received annually until the income is exhausted, or converting it into an annuity with guaranteed payments for a chosen number of years, again paying tax each year on moneys received.
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