What Is an Accumulation Option? An accumulation option is a policy feature of permanent life insurance that reinvests dividends back into the policy, where it can earn interest. Some types of insurance pay dividends to their policyholders each year when the insurance company performs better than estimated. Accumulation options are one of several options policyholders have for what
What Is the Accumulation Phase? Accumulation phase has two meanings for investors and those saving for retirement. It refers to the period when an individual is working and planning and ultimately building up the value of their investment through savings. The accumulation phase is then followed by the distribution phase, in which retirees begin accessing
What Is an Accumulation Plan? An accumulation plan is a general financial strategy in which an investor attempts to build the value of a portfolio. In the context of mutual funds, an accumulation plan is a formal arrangement in which an investor contributes a specified amount of money to the fund on a periodic basis.
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
