Accounting and Finance Questions

A pro forma invoice is a price quote and subject to change. Accounts Payable Services does not pay from pro forma invoices, statements, quotes or estimates.

The primary Economic function of the Financial system is to match one person's savings with another person's investment.

* As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner.

* They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities.

* These financial services help to make the overall economy more efficient.

Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.

Under state law limited exemptions from local real property taxes for individuals who qualify are senior citizens(blind and disabled persons), who may defer their taxes; Veterans, who receive $4000 off assessed value; and homeowners, who receive $7000 off assessed value.

Journal Entries are recorded on a double entry system ie debit and credit concept. In order to record a journal entry the following steps need to be followed.

  - Enter the Journal entry number

  - Enter the Date of transaction

  - Enter the Debit item (as per the golden principles of accountancy)

  - Enter the corresponding GL folio number

  - Enter the Debit amount

  - Enter the credit item(as per the golden principles of accountancy)

  - Enter the amount in the credit column

  - Provide a brief description of the transaction

  - leave a single line before next transaction

The advantage of equity finance for a company – raising money by selling shares – is that this money does not have to be repaid. However, new shareholders usually get to have a say in how the company is run. Despite these rights, equity is often seen as a risky choice for investors as they will lose all their money if the company doesn’t prosper. If it does well, on the other hand, they may see their stake multiply in value many times over.

Debt finance – money raised through loans – must be repaid eventually by a company, usually with interest, but lenders won’t be able to exert as much influence as shareholders over how the company does business. The debt of a reliable company is usually seen as a safe investment, but fixed repayment schedules means that there are few opportunities for large returns.