Bookkeeping

This situation usually arises when a person wants to transfer funds from one account to another, and does so by writing a check to himself from one account and depositing it in another account. When someone uses a check or money order for payment, the payee typically must endorse the check by signing or stamping […]

Funds must be spent on (or saved for) only in ways that help the beneficiary. In this aspect, the representative is acting as the fiduciary to the actual payee. In the case of a promissory note, through which one party promises to pay another party a predetermined sum, the party receiving the payment is known

It follows after the phrase “Pay to the order of” in the face of the check. An effective representative payee should improve the beneficiary’s life and work in the beneficiary’s best interests. If a representative payee takes advantage of their position, the Social Security Administration should be notified immediately. It’s important to note that the

It does not take into account factors such as long-term debt and depreciation which can also affect a company’s liquidity position. It measures the ability of a company to meet its short-term financial obligations with quick assets. Finally, note that a company’s liquid securities are an element of its short-term assets. The quick ratio formula

The Quick Ratio, also known as the Acid-test or Liquidity ratio, measures the ability temporary and permanent accounts of a business to pay its short-term liabilities by having assets that are readily convertible into cash. These assets are, namely, cash, marketable securities, and accounts receivable. These assets are known as “quick” assets since they can quickly

It also does not provide information regarding the value of its inventory and marketable securities. While the quick ratio is not a perfect indicator of liquidity, it is one tool that analysts use to get a snapshot of how well a company can meet its short-term obligations. Improving your business’s quick ratio can make it