Accounting and Finance Questions

Repo Rate is the rate at which the commercial banks borrows money from the central bank of a country i.e, RBI in India.

Reverse Repo Rate is the rate at which the central bank of a country, in case of India it is RBI borrows money from the commercial banks in the country.

Accounts Receivable means the amount which comes in to the business. Eg: If the trader made sales to the customer then obviously the trader will received the amount for the sales made. So here the amount which comes in is said to be accouts receivable.

In economy, the currency value depends on imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices.

A company may also have various company codes across the different locations. There will be exchange of services between these company codes. These goods and services which are shared or exchanged between these company codes are bring to terms during the month end process. The exchange difference has to be settled by a company code in the way of money transfer.

This process is known as Intercompany Settlement. 

Generally Accepted Accounting Principles (GAAP) are basic accounting principles and guidelines are concepts that govern the field of accounting.

Accounting principles and guidelines include :

* Business Entity Assumption

* Accounting Period

* Historical Cost Concept

* Full Disclosure Principle

* Cost Principle

* Matching Principle

* Materiality

* Monetary Unit Assumption.

 Accounts receivables help small businesses by providing quick-time period liquidity. Additionally continued sales on credit provide the  much-needed continuity for small companies.

Other things the same, when the interest rate rises people would want to lend more, making the quantity of loanable funds supplied increase.

Accounts Receivables help small businesses by providing short-term liquidity. Also continued sales on credit provide the much needed continuity for small businesses.