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Sat 15 Oct, 2005 10:50 am
Can anyone please explain to me these following accounting terms with examples? Cash Flow, Mutual Fund and Mortgage Bond. Thanks
Cash flow...that would be the money you have coming in. How do you get cash flow going? Submit bills for work done and then deposit the payments into an account from which you can draw in order to pay bills of your own and purchase more supplies for more jobs for which you will receive payment. This is the simple format of cash flow.
Mutual Fund.. essentially a company/corporation which pools together money from shareholders and then invests in stocks, bonds and other assets (such as parts of other companies).
Mortgage Bond...I have absolutely no idea...I think it would have something to do with a bond being placed against the mortgage of your property.
Keep in mind the above definitions are my take on things from what I can still piece together from a handful of accounting courses I took some 15 years ago; but, have never actually used within my life on a professional basis.
To help you out and for future research here is an accounting dictionary...
http://www.ventureline.com/glossary.asp