Accounting and Finance Questions

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.

Payroll is defined as its a remuneration given for work done by individuals on daily,monthly,weekly etc....

If the price of a product rises, the demand for the substitute product increases.

Unearned revenue is the money or revenue earned for the product or the service that is not yet sold or provided to the customer. Hence, it comes under liabilities.

The words "asset" and "liability" are two very common words in accounting. Liabilities are legally binding obligations that are payable to another person or entity. Accounts payable, loans, mortgages, deferred revenue,... come under liabilities.

Direct tax is a tax directly paid to the government by the individuals or organizations on whom it is imposed. Sales Tax is paid for the sales of certain goods and services.

A legal strategy that allows a government to grab hold of private property for public use is known as eminent domain. The seizing authority must pay fair market value for the property seized.

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