What you should know about repos
Article Abstract:
In a repurchase (repo) agreement, cash is transferred from an investor to a broker or a bank, and the investor receives government securities or government agency securities as collateral. At the end of the repo agreement term, the securities are returned in exchange for the original amount of the agreement plus interest; such an agreement is considered to be a method of realizing a better yield on idle cash accounts than a savings institution would give. Despite a market of approximately $300 billion, a number of losses have occurred in recent years due to use of unregulated secondary government securities dealers and a lack of investor awareness of the risks. The major risks associated with repo agreements - credit risk and market risk - and the measures being taken to protect investors and prevent losses are discussed.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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Everything you wanted to know about checks
Article Abstract:
Management accountants need to know about checks in order to speed up collections and enhance their companies' financial position. In order to determine the exact availability of checks deposited at the firm's bank, the accountant should obtain a bank availability schedule from each bank used, track check deposits over a week, compare transit routing codes to the schedule, calculate the availability of daily reports, obtain daily bank balance reports, and compare the average of check availability with the bank's account analysis statement which contains an average float figure. Businesses should receive the availability the bank offers its large corporate customer, can negotiate fixed availability on all checks, and should avoid one-day delayed availability on cash and electronic payments.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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Electronic data interchange: what a controller should know
Article Abstract:
Electronic data interchange (EDI) is a computer-to-computer transmission system that allows intercompany transmission of business documents in a standard format. EDI brings several important benefits. One is cost savings, which EDI permits by providing opportunities for operational efficiency. Another benefit, quite simply put, is business survival. Many large firms regard EDI communications ability as a prerequisite for vendor selection. A company wishing to adopt EDI in its business operations must consider several issues dealing with its implementation and control. Legal and business issues must also be factored in.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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