What Is the Automated Clearing House (ACH)? The Automated Clearing House (ACH) is an electronic funds-transfer system run by Nacha. The Automated Clearing House traces its roots back to the late 1960s but was officially established in the mid-1970s. The payment system provides many types of ACH transactions, such as payroll deposits. It requires a
What Is Accounts Receivable Conversion (ARC)? Accounts receivable conversion (ARC) is a process that allows paper checks to be electronically scanned and converted into an electronic payment through the Automated Clearing House (ACH). This refers explicitly to checks that companies receive in payment for an account receivable. Accounts receivable conversion saves both the time and
What Are Accounts Receivable (AR) Discounted? Accounts receivable discounted refers to the selling of unpaid outstanding invoices for a cash amount that is less than the face value of those invoices. It is an accounting tactic that discounts the value of accounts receivable (AR) on a company’s balance sheet in return for cash balances. Key
What Is an Accounts Receivable Subsidiary Ledger? An accounts receivable subsidiary ledger is an accounting ledger that shows the transaction and payment history of each customer to whom the business extends credit. The balance in each customer account is periodically reconciled with the accounts receivable balance in the general ledger to ensure accuracy. The subsidiary
What Is an Account Statement? An account statement is a periodic summary of account activity with a beginning date and an ending date. The most commonly known are checking account statements, usually provided monthly, and brokerage account statements, which are provided monthly or quarterly. Monthly credit card bills are also considered account statements. Key Takeaways
What Are Accounts Uncollectible? Accounts uncollectible are receivables, loans, or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor’s bankruptcy, an inability to find the debtor, fraud on the part of the debtor, or lack of proper documentation to prove that debt exists.
What Is the ACCRA Cost Of Living Index? The ACCRA Cost of Living Index is a dataset containing key living costs compiled by the Council for Community and Economic Research. Economists can use the index to make an apples-to-apples comparison of the cost of living between two different urban areas in the United States. Understanding
What Is an Accredited Asset Management Specialist (AAMS)? The Accredited Asset Management Specialist (AAMS) is a professional designation awarded by the College for Financial Planning to financial professionals who complete a self-study program, pass an exam, and agree to comply with a code of ethics. Successful applicants earn the right to use the AAMS designation
What Does Accredited in Business Valuation Mean? Accredited in Business Valuation (ABV) is a professional designation awarded to a certified public accountant (CPA), who specializes in calculating businesses’ value. The ABV certification is overseen by the American Institute of Certified Public Accountants (AICPA). It requires candidates to complete an application process, pass an exam, meet
What Is an Accredited Investor? An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience. In
