Accounting and Finance Questions

Contingent or temporary workers have little or no job security as their employment is based on a temporary
Contingent workers are not committed to the organization for a long run, as they know that they will be out of there in very short period of time

Transfer payments are included in GDP and not in GDP.

Purchase return and allowances is a contra account to purchases.

Fractional reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash on hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties.

With the computerised payroll systems -

=>You saved a lot of your time,
=>Your accuracy and efficiency is increased by many times.
=>Your are free from small and small human mistakes in calculation and linking etc.
=>Once master data is updated(CTC,Reimbursement), rest is taken care by the systems once input is given as and when salary is processed.
=>Better control is exercised.

The persons whose primary investing objective is to preserve capital while generating a tax-free income stream, then municipal bonds are worth considering.

Municipal bonds (munis) are debt obligations issued by government entities. When you buy a municipal bond, you are loaning money to the issuer in exchange for a set number of interest payments over a predetermined period. At the end of that period, the bond reaches its maturity date, and the full amount of your original investment is returned to you.

Types of Municipal Bonds :

Municipal bonds come in the following two varieties:

1. General obligation bonds (GO)
2. Revenue bonds

General obligation bonds, issued to raise immediate capital to cover expenses, are supported by the taxing power of the issuer.

Revenue bonds, which are issued to fund infrastructure projects, are supported by the income generated by those projects.

Both types of bonds are tax exempt and particularly attractive to risk-averse investors due to the high likelihood that the issuers will repay their debts.

The balance of an account is determined by the difference of credits amount and debits amount in the sheet.