Commissioner of the Public Debt and Prepayment: Difference between pages

Latest revision as of 00:50, 2 January 2021

1. Banking.

The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.

2. Accounting.

An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.

It is a prepaid expense.

Example: Venue hire

We book a venue for a function.

And pay 50% of the hire fee in advance.

The 50% paid in advance is an ASSET for us.

We are going to enjoy the use of the venue in future, but it has already been paid for.

So the 50% already paid represents a future economic benefit.

@@ Line 1: / Line 1: @@
-(CPD).
+. ''Banking''.
-''US. ''
+The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.
-Head of the Bureau of the Public Debt.
-The Bureau is the agency responsible for borrowing the money needed to operate the federal government, within the Fiscal Service of the United States Department of the Treasury.
+. ''Accounting''.
+An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.
-==See also==
+It is a prepaid expense.
-* [[Fiscal]]
-* [[Fiscal deficit]]
+:<span style="color:#4B0082">'''''Example: Venue hire'''''</span>
+:We book a venue for a function.
+:And pay 50% of the hire fee in advance.
+:The 50% paid in advance is an ASSET for us.
+:We are going to enjoy the use of the venue in future, but it has already been paid for.
+:So the 50% already paid represents a future economic benefit.
+== See also ==
+* [[Accrual]]
+* [[Average effective maturity]]
+* [[Bookkeeping]]
+* [[Early Repayment Charge]]
+* [[Extension risk]]
+* [[Prepaid expense]]
+* [[Prepayment risk]]
+* [[Prepayments]]
+[[Category:Accounting,_tax_and_regulation]]
+[[Category:Identify_and_assess_risks]]
+[[Category:Manage_risks]]
+[[Category:Risk_frameworks]]