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| 1. ''Financial accounting''.
| | ''Risk management''. |
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| In financial accounting a debit balance is an asset within the balance sheet, or an expense within the profit and loss account (or income statement).
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| :<span style="color:#4B0082">'''Debit balance miscommunication'''</span>
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| :A common miscommunication between the functions of accounting and treasury is the different use of debits and credits. Accountants/controllers are used to posting journal entries where from a balance sheet perspective a debit signifies an increase in value, and a credit a reduction in value. However, for treasury staff a credit is an increase in value, and a debit a reduction. This simple difference is often cause for some awkward conversations between both professions.
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| :''The Group Treasurer, An ACT guide to the first 100 days, Page 9.''
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| 2. ''Banking''.
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| In banking a debit balance - in the bank's records - is one which stands in favour of the bank.
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| The customer owes money to the bank.
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| Also known as an overdrawn balance.
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| (Contrasted with a credit, or positive, balance in the bank's records. Being a balance standing in favour of the customer.)
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| == See also == | | == See also == |
| * [[Assets]] | | * [[Caps]] |
| * [[Balance]]
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| * [[Balance sheet]]
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| * [[Credit balance]]
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| * [[Debit]]
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| * [[Income statement]]
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| * [[Overdraft]]
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| * [[Overdrawn]]
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| * [[Profit and Loss account]]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Cash_management]] |
| | [[Category:Liquidity_management]] |
Latest revision as of 17:46, 29 June 2022
Risk management.
Caps.
See also
