Big data and Prepayment: Difference between pages

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Big data refers to the large volumes of historically unstructured information held by organisations.
1. ''Banking''.


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


Big data technology interrogates this previously unstructured information to produce more useful summarised and selected data and analysis.


For example, anti-fraud technology in banks can analyse how often bank customers log into their account, where they usually log in from, and how quickly they type in their user name and password.
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.
 
 
:<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 ==
== See also ==
*[[General Data Protection Regulation]]
* [[Accrual]]
*[[Operational risk]]
* [[Average effective maturity]]
* [[Bookkeeping]]
* [[Early Repayment Charge]]
* [[Extension risk]]
* [[Prepaid expense]]
* [[Prepayment risk]]
* [[Prepayments]]


[[Category:Compliance_and_audit]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Technology]]

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.


See also