How To Search Public Death Records Online
The proverbial phrase ‘last but not least’ applies well with death records. Although it is by nature the last records started on a person, it is just as significant in content as other public records if not more. They can include obituaries, death notices and certificates, cemeteries, burials and funeral matters. Personal particulars like name, age, residence, spouse and other surviving family members, cause of death and so forth are also set within.
Death records are one of the vital records, along with birth, divorce and marriage. They are typically maintained at a government agency within the locality of where the death takes place or the capital city of the state of residence of the deceased. Being public records, they are made available for public access. Restrictions apply, but essentially, anyone can pull out the death records of anyone as long as procedures are followed.
There are different ways of accessing death records. One can write in, walk in, telephone, fax, or log in online to the respective government offices or commercial information providers. Expectedly, the most widely employed method is by logging in online via the internet. It is fast, easy and convenient, the information age being largely propelled by digitization, so why not?
There are basically two versions of online death records, free and fee-based. Government sources are predominantly free, with some charging nominal administrative fees but there don’t seem to be any established standards or guidelines as they can be quite varied in many respects. Non-government sources can be free or paid. There are some websites which provide reasonably decent information free-of-charge but they are likely to have strings attached. A common tactic that is used by commercial information brokers to entice sign-up for their fee-based subscriptions is by offering free search or teaser information. Then again, there’s no force involved and free will is retained. Some of them actually deliver very good value for money and thanks to them, Death Records won’t be dead.
Risks in International Business
Just as there are reasons to get into global markets, and benefits from global markets, there are also risks involved in locating companies in certain countries. Each country may have its potentials; it also has its woes that are associated with doing business with major companies. Some of the rogue countries may have all the natural minerals but the risks involved in doing business in those countries exceed the benefits. Some of the risks in international business are:
(1) Strategic Risk
(2) Operational Risk
(3) Political Risk
(4) Country Risk
(5) Technological Risk
(6) Environmental Risk
(7) Economic Risk
(8) Financial Risk
(9) Terrorism Risk
Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers.
Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization.
Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable country’s political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets.
Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments’ policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk.
Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena.
Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area.
Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business.
Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firm’s ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms’ assets are confiscated and that contributes to financial losses.
Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries.
Although the benefits in international business exceed the risks, firms should take a risk assessment of each country and to also include intellectual property, red tape and corruption, human resource restrictions, and ownership restrictions in the analysis, in order to consider all risks involved before venturing into any of the countries.
I Am Broke, What Should I Do?
When it comes to having money you will find that most of the people who you socialise with will tell you that they haven’t got any money, they will tell you in your face, I am broke. When I come across an individual like that I cannot but help to think how sad they are. This is because when someone claims that they are broke, usually they are, they are just too stingy to show you any money in case you might want some of their cash. But the thing that most annoys me is the saying, I am broke. This is because usually when someone says that, it means that they are too lazy to get a job or do anything about their self chosen unfortunate situation.
So after seeing these people I decided to do something for them, for example give them ideas on how to raise finance. So if you are one of those individuals, please stop looking for the pay check to drop from the sky, and take a look at opportunities in the home based business industry. I suggest that you look online because I assume these individuals are lazy enough to even think about making a trip to the job centres. The home based industry can be your escape to having some money, for some even the ticket to live the extraordinary life that is only seen in dreams. Learn how to earn cash from the comfort of your own home, there are many ways you can earn online these days. Perhaps the biggest one of all for you to start earning, BIG TIME. So please stop saying I am broke, because I know 13-year-olds who do not know the meaning of that word, who are earning over $1000 a month online.
Unclaimed Money In Texas – Lost Cash And Property Up For Grabs For 200,000 Texans
They say everything comes big in the Lone Star State- the longhorned bovines, cowboy boots, prairies, steaks, cars, and piles of money. Texas unclaimed money that is. Texas comptroller Carole Keeton Strayhorn has almost $2 billion dollars of unclaimed cash to give-away to her state’s residents. Well, it’s not so much giving-away as giving-back since the lost cash was already theirs to begin with. Funny thing is most of the 200,000 people owed Texas unclaimed properties don’t even know they have money coming to them.
People tend to forget to collect salary or insurance checks when they get new jobs or move to a new house. They also forget to leave behind forwarding addresses when they move and this is one of the main causes for lost checks. When business and financial establishments can’t find the owners of these lost financial assets for 5 years (in Texas), they are turned over to the state as dictated by Texas Unclaimed Property Law which follows the country’s escheat laws. The unclaimed funds stay with Texas state Comptroller’s office until their owners come to claim them.
Unclaimed property in Texas covers anything from forgotten bank accounts, savings accounts, stock and cash dividends, uncollected insurance benefits and money orders to gift certificates, un-cashed checks and contents of safety deposit boxes which have been considered abandoned by their owners. The latter is the only example of tangible assets under the Texas Unclaimed Property Law and these are auctioned-off in dBay after 2 years of being turned-over to the State Comptroller’s office. So if you’re looking for family heirlooms or antiques that your Texan relatives may have lost over the years, it’s best to go check-out eBay.
George Tamayo, manager of the unclaimed funds division in Texas says “From our experience, we determined we were getting the most bang for our buck on eBay.” to which he adds “It’s more cost-effective, because we are able to do the auctions ourselves.” His state was one of the first to make use of the internet auction site early in 2002, switching from the traditional method of disposing of the abandoned property through live auctions. According to Jackie Schroeter, safe deposit box manager for Texas, posting on eBay saves her office time and effort. With the live auctions, the Unclaimed Property office would have to shut down to coordinate them due to lack in manpower. It just takes a few clicks with a computer mouse now.
The proceeds from these auctions go back to the Texas unclaimed property fund where they still can be claimed by their rightful owners at any time. “The Unclaimed Property List contains the names of Texans with property valued at $100 or more that was reported to the state within the last year.”, says Texas Comptroller Carole Keeton Strayhorn who also announced in a recent report, “Since I took office, I have returned more than $532 million in unclaimed property to its original owners,”
This is good news indeed for residents of the Lone Star State, but don’t think the Comptroller is going to come to your front door and deliver your lost funds to you. Unless you have no immediate need for extra bucks in your pocket, you should search for unclaimed money in Texas or other states now!
Due Diligence Checklists – For Commercial Real Estate Transactions
Planning to purchase or finance Commercial or Industrial Real Estate? Shopping Center? Office Building? Restaurant/Banquet property? Parking Lot? Storefront? Gas Station? Manufacturing facility? Warehouse? Logistics Terminal? Medical Building? Nursing Home? Hotel/Motel? Pharmacy? Bank facility? Sports and Entertainment Arena? Other?
A KEY to investing in commercial real estate is performing an adequate Due Diligence Investigation to assure you know all material facts to make a wise investment decision and to calculate your expected investment yield.
The following checklists are designed to help you conduct a focused and meaningful Due Diligence Investigation.
Basic Due Diligence Concepts:
Commercial Real Estate transactions are NOT similar to large home purchases.
Caveat Emptor: Let the Buyer beware.
Consumer protection laws applicable to home purchases seldom apply to commercial real estate transactions. The rule that a Buyer must examine, judge, and test for himself, applies to the purchase of commercial real estate.
Due Diligence: “Such a measure of prudence, activity, or assiduity, as is proper to be expected from, and ordinarily exercised by, a reasonable and prudent [person] under the particular circumstances; not measured by any absolute standard, but depending upon the relative facts of the special case.” Black’s Law Dictionary; West Publishing Company.
Contractual representations and warranties are NOT a substitute for Due Diligence.
Breach of representations and warranties = Litigation, time and money.
WHAT DILIGENCE IS DUE?
The scope, intensity and focus of any due diligence investigation of commercial or industrial real estate depends upon the objectives of the party for whom the investigation is conducted. These objectives may vary depending upon whether the investigation is conducted for the benefit of (i) a Strategic Buyer (or long-term lessee); (ii) a Financial Buyer; (iii) a Developer; or (iv) a Lender.
If you are a Seller, understand that to close the transaction your Buyer (and its Lender) must address all issues material to its objective – some of which require information only you, as Owner, can adequately provide.
GENERAL OBJECTIVES:
(i) A “Strategic Buyer” (or long-term lessee) is acquiring the property for its own use and must verify that the property is suitable for that intended use.
(ii) A “Financial Buyer” is acquiring the property for the expected return on investment generated by the property’s income stream, and must determine the amount, velocity and durability of the revenue stream. A sophisticated Financial Buyer will likely calculate its yield based upon discounted cash-flows rather than the must less precise capitalization rate (“cap rate”), and will need adequate financial information to do so.
(iii) A “Developer” is seeking to add value by changing the character or use of the property – usually with a short-term to intermediate-term exit strategy to dispose of the property; although, a Developer might plan to hold the property long term as Financial Buyer after development or redevelopment. The Developer must focus on whether the planned change is character or use can be accomplished in a cost-effective manner. A developer conducting due diligence will focus on issues involving market demand, access, use and finances.
(iv) A “Lender” is seeking to establish two basic lending criteria:
1. “Ability to Repay” – The ability of the property to generate sufficient revenue to repay the loan on a timely basis; and
2. “Sufficiency of Collateral” – The objective disposal value of the collateral in the event of a loan default, to assure adequate funds to repay the loan, carrying costs and costs of collection in the event forced collection becomes necessary.
The amount of diligent inquiry due to be expended (i.e. “Due Diligence”) to investigate any particular commercial or industrial real estate project is the amount of inquiry required to answer each of the following questions to the extent relevant to the objectives of the party conducting the investigation:
I. THE PROPERTY:
1. Exactly what PROPERTY does Purchaser believe it is acquiring?
(a) Land?
(b) Building?
(c) Fixtures?
(d) Other Improvements?
(e) Other Rights?
(f) The entire fee title interest including all air rights and subterranean rights?
(g) All development rights?
2. What is Purchaser’s planned use of the Property?
3. Does the physical condition of the Property permit use as planned?
(a) Commercially adequate access to public streets and ways?
(b) Sufficient parking?
(c) Structural condition of improvements?
(d) Environmental contamination?
(i) Innocent Purchaser defense vs. exemption from liability
(ii) All Appropriate Inquiry
4. Is there any legal restriction to Purchaser’s use of the Property as planned?
(a) Zoning?
(b) Private land use controls?
(c) Americans with Disabilities Act?
(d) Availability of licenses?
(i) Liquor license?
(ii) Entertainment license?
(iii) Outdoor dining license?
(iv) Drive through windows permitted?
(e) Other impediments?
5. How much does Purchaser expect to pay for the property?
6. Is there any condition on or within the Property that is likely to increase Purchaser’s effective cost to acquire or use the Property?
(a) Property owner’s assessments?
(b) Real estate tax in line with value?
(c) Special Assessment?
(d) Required user fees for necessary amenities?
(i) Drainage?
(ii) Access?
(iii) Parking?
(iv) Other?
7. Any encroachments onto the Property, or from the Property onto other lands?
8. Are there any encumbrances on the Property that will not be cleared at Closing?
(a) Easements?
(b) Covenants Running with the Land?
(c) Liens or other financial servitudes?
(d) Leases?
9. Leases?
(a) Security Deposits?
(b) Options to Extend Term?
(c) Options to Purchase?
(d) Rights of First Refusal?
(e) Rights of First Offer?
(f) Maintenance Obligations?
(g) Duty on Landlord to provide utilities?
(h) Real estate tax or CAM escrows?
(i) Delinquent rent?
(j) Pre-Paid rent?
(k) Tenant mix/use controls?
(l) Tenant exclusives?
(m) Tenant parking requirements?
(n) Automatic subordination of Lease to future mortgages?
(o) Other material Lease terms?
10. New Construction?
(a) Availability of construction permits?
(b) Utilities?
(c) NPDES (National Pollutant Discharge Elimination System) Permit?
(i) Phase 2 effective March 2003 – Permit required if earth is disturbed on one acre or more of land.
(ii) If applicable, Storm Water Pollution Prevention Plan (SWPPP) is required.
II. THE SELLER:
1. Who is the Seller?
(a) Individual?
(b) Trust?
(c) Partnership?
(d) Corporation?
(e) Limited Liability Company?
(f) Other legally existing entity?
2. If other than natural person, does Seller validly exist and is Seller in good standing?
3. Does the Seller own the Property?
4. Does Seller have authority to convey the Property?
(a) Board of Director Approvals?
(b) Shareholder or Member approval?
(c) Other consents?
(d) If foreign individual or entity, are any special requirements applicable?
(i) Qualification to do business in jurisdiction of Property?
(ii) Federal Tax Withholding?
(iii) US Patriot Act compliance?
5. Who has authority to bind Seller?
6. Are sale proceeds sufficient to pay off all liens?
III. THE PURCHASER:
1. Who is the Purchaser?
2. What is the Purchaser/Grantee’s exact legal name?
3. If Purchaser/Grantee is an entity, has it been validly created and is it in good standing?
(a) Articles or Incorporation – Articles of Organization
(b) Certificate of Good Standing
4. Is Purchaser/Grantee authorized to own and operate the Property and, if applicable, finance acquisition of the Property?
(a) Board of Director Approvals?
(b) Shareholder or Member approval?
(c) If foreign individual or entity, are any special requirements applicable?
(i) Qualification to do business in jurisdiction of the Property?
(ii) US Patriot Act compliance?
(iii) Bank Secrecy Act/Anti-Money Laundering compliance?
5. Who is authorized to bind the Purchaser/Grantee?
IV. PURCHASER FINANCING:
A. BUSINESS TERMS OF THE LOAN:
What loan terms have the Purchaser, as Borrower, and its Lender agreed to?
(a) What is the amount of the loan?
(b) What is the interest rate?
(c) What are the repayment terms?
(d) What is the collateral?
(i) Commercial real estate only?
(ii) Real estate and personal property together?
(e) First lien? A junior lien?
(f) Is it a single advance loan?
(g) A multiple advance loan?
(h) A construction loan?
(i) If it is a multiple advance loan, can the principal be re-borrowed once repaid prior to maturity of the loan; making it, in effect, a revolving line of credit?
(j) Are there reserve requirements?
(i) Interest reserves?
(ii) Repair reserves?
(iii) Real estate tax reserves?
(iv) Insurance reserves?
(v) Environmental remediation reserves?
(vi) Other reserves?
(k) Are there requirements for Borrower to open business operating accounts with the Lender? If so, is the Borrower obligated to maintain minimum compensating balances?
(l) Is the Borrower required to pledge business accounts as additional collateral?
(m) Are there early repayment fees or yield maintenance requirements (each sometimes referred to as “pre-payment penalties”)?
(n) Are there repayment blackout periods during which Borrower is not permitted to repay the loan?
(o) Is there a Loan Commitment fee or “good faith deposit” due upon Borrower’s acceptance of the Loan Commitment?
(p) Is there a loan funding fee or loan brokerage fee or other loan fee due Lender or a loan broker at closing?
(q) What are the Borrower’s expense reimbursement obligations to Lender? When are they due? What is the Borrower’s obligation to pay Lender’s expenses if the loan does not close?
B. DOCUMENTING THE COMMERCIAL REAL ESTATE LOAN
Does Purchaser have all information necessary to comply with the Lender’s loan closing requirements?
Not all loan documentation requirements may be known at the outset of a transaction, although most commercial real estate loan documentation requirements are fairly typical. Some required information can be obtained only from the Seller. Production of that information to Purchaser for delivery to its lender must be required in the purchase contract.
As guidance to what a commercial real estate lender may require, the following sets forth a typical Closing Checklist for a loan secured by commercial real estate.
Commercial Real Estate Loan Closing Checklist
1. Promissory Note
2. Personal Guaranties (which may be full, partial, secured, unsecured, payment guaranties, collection guaranties or a variety of other types of guarantees as may be required by Lender).
3. Loan Agreement (often incorporated into the Promissory Note and/or Mortgage in lieu of being a separate document)
4. Mortgage [sometimes expanded to be a Mortgage, Security Agreement and Fixture Filing]
5. Assignment of Rents and Leases
6. Security Agreement
7. Financing Statement (sometimes referred to as a “UCC-1″, or “Initial Filing”)
8. Evidence of Borrower’s Existence In Good Standing; including
(a) Certified copy of organizational documents of borrowing entity (including Articles of Incorporation, if Borrower is a corporation; Articles of Organization and written Operating Agreement, if Borrower is a limited liability company; Certified copy of trust agreement with all amendments, if Borrower is a land trust or other trust; etc.)
(b) Certificate of Good Standing (if a corporation or LLC) or Certificate of Existence (if a limited partnership) or Certificate of Qualification to Transact Business (if Borrower is an entity doing business in a State other than its State of formation)
9. Evidence of Borrower’s Authority to Borrow; including
(a) a Borrower’s Certificate;
(b) Certified Resolutions
(c) Incumbency Certificate
10. Satisfactory Commitment for Title Insurance (which will typically require, for analysis by the Lender, copies of all documents of record appearing on Schedule B of the title commitment which are to remain after closing), with required commercial title insurance endorsements, often including:
(a) Affirmative Creditors Rights Endorsement (extending coverage over policy exclusion 7 and policy exclusions 3(a) and 3(d) as they relate to creditor’s rights matters)
(b) ALTA 3.1 Zoning Endorsement modified to include parking
(c) ALTA Comprehensive Endorsement 1
(d) Location Endorsement (street address)
(e) Access Endorsement (vehicular access to public streets and ways)
(f) Contiguity Endorsement (the insured land comprises a single parcel with no gaps or gores)
(g) PIN Endorsement (insuring that the identified real estate tax permanent index numbers are the only applicable PIN numbers affecting the collateral and that they relate solely to the real property comprising the collateral)
(h) Usury Endorsement (insuring that the loan does not violate any prohibitions against excessive interest charges)
(i) other title insurance endorsements applicable to protect the intended use and value of the collateral, as may be determined upon review of the Commitment for Title Insurance and Survey or arising from the existence of special issues pertaining to the transaction or the Borrower.
11. Current ALTA Survey (3 sets), [typically prepared in accordance with 2005 Minimum Standard Detail for ALTA/ACSM Land Title Surveys, certified to the lender, Buyer and the title insurer, including items 1 through 4, 6, 7(a), 7(b)(1), 8 through 11(a) and 14 from the Surveyor's "Optional Survey Responsibilities and Specifications" referred to as "Table A"].
12. Current Rent Roll
13. Certified copy of all Leases (3 sets)
14. Lessee Estoppel Certificates
15. Lessee Subordination, Non-Disturbance and Attornment Agreements [sometimes referred to simply as "SNDAs"].
16. UCC, Judgment, Pending Litigation, Bankruptcy and Tax Lien Search Report
17. Appraisal (must comply with Title XI of FIRREA (Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended)
18. Environmental Site Assessment Report (sometimes referred to as Environmental Phase I and/or Phase 2 Audit Reports)
19. Environmental Indemnity Agreement (signed by Borrower and guarantors)
20. Site Improvements Inspection Report
21. Evidence of Hazard Insurance naming Lender as the Mortgagee/Lender Loss Payee; and Liability Insurance naming Lender as an “additional insured” (sometimes listed as simply “Acord 27 and Acord 25, respectively)
22. Legal Opinion of Borrower’s Attorney
23. Credit Underwriting documents, such as signed tax returns, property operating statements, etc. as may be specified by Lender
24. Compliance Agreement (sometimes also called an Errors and Omissions Agreement), whereby the Borrower agrees to correct, after closing, errors or omissions in loan documentation.
It is useful to become familiar with the Lender’s loan documentation requirements as early in the transaction as practical. The requirements will likely be set forth with some detail in the lender’s Loan Commitment – which is typically much more detailed than most loan commitments issued in residential transactions.
Conducting the Due Diligence Investigation in a commercial real estate transaction can be time consuming and expensive in all events.
If the loan requirements cannot be satisfied, it is better to make that determination during the contractual “due diligence period” – which typically provides for a so-called “free out” – rather than at a later date when the earnest money may be at risk of forfeiture or when other liability for failure to close may attach.
CONCLUSION
Conducting an effective due diligence investigation in a commercial real estate transaction to discover all material facts and conditions affecting the Property and the transaction is of critical importance.
Unlike owner occupied residential real estate, when a house can nearly always be occupied as the purchaser’s home, commercial real estate acquired for business use or for investment is impacted by numerous factors that may affect its use and value.
The existence of these factors and their affect on a Purchaser’s ability to use the Property for its intended use and on the Purchaser’s projected investment yield can only be discovered through diligent investigation and attention to detail.
The circumstances of each transaction will determine what degree of diligence is required. The level of diligence required under the circumstances is the diligence that is due.
Exercise Due Diligence.
Trading and Profit and Loss Account
Trading Account
As already discussed, first section of trading and profit and loss account is called trading account. The aim of preparing trading account is to find out gross profit or gross loss while that of second section is to find out net profit or net loss.
Preparation of Trading Account
Trading account is prepared mainly to know the profitability of the goods bought (or manufactured) sold by the businessman. The difference between selling price and cost of goods sold is the,5 earning of the businessman. Thus in order to calculate the gross earning, it is necessary to know:
(a) cost of goods sold.
(b) sales.
Total sales can be ascertained from the sales ledger. The cost of goods sold is, however, calculated. n order to calculate the cost of sales it is necessary to know its meaning. The ‘cost of goods’ includes the purchase price of the goods plus expenses relating to purchase of goods and brining the goods to the place of business. In order to calculate the cost of goods ” we should deduct from the total cost of goods purchased the cost of goods in hand. We can study this phenomenon with the help of following formula:
Opening stock + cost of purchases – closing stock = cost of sales
As already discussed that the purpose of preparing trading account is to calculate the gross profit of the business. It can be described as excess of amount of ‘Sales’ over ‘Cost of Sales’. This definition can be explained in terms of following equation:
Gross Profit = Sales-Cost of goods sold or (Sales + Closing Stock) -(Stock in the beginning + Purchases + Direct Expenses)
The opening stock and purchases along with buying and bringing expenses (direct exp.) are recorded the debit side whereas sales and closing stock is recorded on the credit side. If credit side is Jeater than the debit side the difference is written on the debit side as gross profit which is ultimately recorded on the credit side of profit and loss account. When the debit side exceeds the credit side, the difference is gross loss which is recorded at credit side and ultimately shown on the debit side of profit & loss account.
Usual Items in a Trading Account:
A) Debit Side
1. Opening Stock. It is the stock which remained unsold at the end of previous year. It must have been brought into books with the help of opening entry; so it always appears inside the trial balance. Generally, it is shown as first item at the debit side of trading account. Of course, in the first year of a business there will be no opening stock.
2. Purchases. It is normally second item on the debit side of trading account. ‘Purchases’ mean total purchases i.e. cash plus credit purchases. Any return outwards (purchases return) should be deducted out of purchases to find out the net purchases. Sometimes goods are received before the relevant invoice from the supplier. In such a situation, on the date of preparing final accounts an entry should be passed to debit the purchases account and to credit the suppliers’ account with the cost of goods.
3. Buying Expenses. All expenses relating to purchase of goods are also debited in the trading account. These include-wages, carriage inwards freight, duty, clearing charges, dock charges, excise duty, octroi and import duty etc.
4. Manufacturing Expenses. Such expenses are incurred by businessmen to manufacture or to render the goods in saleable condition viz., motive power, gas fuel, stores, royalties, factory expenses, foreman and supervisor’s salary etc.
Though manufacturing expenses are strictly to be taken in the manufacturing account since we are preparing only trading account, expenses of this type may also be included in the trading account.
(B) Credit Side
1. Sales. Sales mean total sales i.e. cash plus credit sales. If there are any sales returns, these should be deducted from sales. So net sales are credited to trading account. If an asset of the firm has been sold, it should not be included in the sales.
2. Closing Stock. It is the value of stock lying unsold in the godown or shop on the last date of accounting period. Normally closing stock is given outside the trial balance in that case it is shown on the credit side of trading account. But if it is given inside the trial balance, it is not to be shown on the credit side of trading account but appears only in the balance sheet as asset. Closing stock should be valued at cost or market price whichever is less.
Valuation of Closing Stock
The ascertain the value of closing stock it is necessary to make a complete inventory or list of all the items in the god own together with quantities. On the basis of physical observation the stock lists are prepared and the value of total stock is calculated on the basis of unit value. Thus, it is clear that stock-taking entails (i) inventorying, (ii) pricing. Each item is priced at cost, unless the market price is lower. Pricing an inventory at cost is easy if cost remains fixed. But prices remain fluctuating; so the valuation of stock is done on the basis of one of many valuation methods.
The preparation of trading account helps the trade to know the relationship between the costs be incurred and the revenues earned and the level of efficiency with which operations have been conducted. The ratio of gross profit to sales is very significant: it is arrived at :
Gross Profit X 100 / Sales
With the help of G.P. ratio he can ascertain as to how efficiently he is running the business higher the ratio, better will be the efficiency.
Closing Entries pertaining to trading Account
For transferring various accounts relating to goods and buying expenses, following closing entries recorded:
(i) For opening Stock: Debit trading account and credit stock account
(ii) For purchases: Debit trading account and credit purchases account, the amount being the et amount after deducting purchases returns.
(iii) For purchases returns: Debit purchases return account and credit purchases account.
(iv) For returns inwards: Debit sales account and credit sales return account
(v) For direct expenses: Debit trading account and credit direct expenses accounts individually.
(vi) For sales: Debit sales account and credit trading account. We will find that all the accounts as mentioned above will be closed with the exception of trading account
(vii) For closing stock: Debit closing stock account and credit trading account After recording above entries the trading account will be balanced and difference of two sides ascertained. If credit side is more the result is gross profit for which following entry is recorded.
(viii) For gross profit: Debit trading account and credit profit and loss account If the result is gross loss the above entry is reversed.
Profit and Loss Account
The profit and loss account is opened by recording the gross profit (on credit side) or gross loss (debit side).
For earning net profit a businessman has to incur many more expenses in addition to the direct expenses. Those expenses are deducted from profit (or added to gross loss), the resultant figure will be net profit or net loss.
The expenses which are recorded in profit and loss account are ailed ‘indirect expenses’. These be classified as follows:
Selling and distribution expenses.
These comprise of following expenses:
(a) Salesmen’s salary and commission
(b) Commission to agents
(c) Freight & carriage on sales
(d) Sales tax
(e) Bad debts
(f) Advertising
(g) Packing expenses
(h) Export duty
Administrative Expenses.
These include:
(a) Office salaries & wages
(b) Insurance
(c) Legal expenses
(d) Trade expenses
(e) Rates & taxes
(f) Audit fees
(g) Insurance
(h) Rent
(i) Printing and stationery
(j) Postage and telegrams
(k) Bank charges
Financial Expenses
These comprise:
(a) Discount allowed
(b) Interest on Capital
(c) Interest on loan
(d) Discount Charges on bill discounted
Maintenance, depreciations and Provisions etc.
These include following expenses
(a) Repairs
(b) Depreciation on assets
(c) Provision or reserve for doubtful debts
(d) Reserve for discount on debtors.
Along with above indirect expenses the debit side of profit and loss account comprises of various business losses also.
On the credit side of profit and loss account the items recorded are:
(a) Discount received
(b) Commission received
(c) Rent received
(d) Interest received
(e) Income from investments
(f) Profit on sale of assets
(g) Bad debts recovered
(h) Dividend received
(i) Apprenticeship premium etc.
Secrets to Passing the California Insurance License Exam
Like most States, California requires that you pass a government administered license exam before you can hang your shingle to sell insurance. In addition, you must take up to 52 hours of pre-license training, which thankfully, can now be done online. Separate license exams and training courses are required to sell property and casualty insurance versus life and health policies. And, there is mandatory continuing education required every two year renewal period as well as additional, special training classes needed to sell specific insurance products like flood insurance, long term care insurance and/or annuity investment policies.
If your plan is to thoroughly study the State handbooks, read and read again all the materials from your license course and take a cram course on test-taking, I can almost guarantee you still won’t pass the California Insurance Exam. These exams can be tough, since they are riddled with confusing and convoluted questions . . . the trademark of most government or quasi-government license exams. So what does it take to pass? Well, that’s what we cover in this article. And, there is a method to the madness.
First Off, Be Wary of Advice and Crazy Tips
Here is just some of the “buzz” around taking the State Exam. For the most part, ignore these rants and tips:
“Taking a cram class is all you need to pass” (Not true. See cram courses below)
“I was told to skip every question on the state exam. That way, these same questions are locked in and the computer will not spit out more difficult ones.” (A crazy conspiracy theory).
“A live teacher is the only way to pass. They pinpoint the “buzz” words you need to pass. They tell you things that can’t be put in writing” (Bunk . . . classes are monitored by the State. And, you need more than buzz words to pass).
“Use common sense to answer the exam questions.” (It won’t work).
“By process of elimination, you can get to the right answer.” (Works sometimes, but you would have to know the subject to eliminate the wrong answers).
“I earned 90% on my online practice exams . . . I’m ready”. (A lot of these 90 percenters still fail. There are practice exams and there are practice exams. See below).
“People who take online courses always fail”. (Bunk . . . our online school has a very high passing ratio . . . it’s what you do with the material that counts).
“Study the course materials . . . you will pass” (There is a lot more to it. It may be a variation the material you learned that is being asked).
“Just look for certain “buzz” words for the answer.” (The State knows all the buzz words . . . you’ won’t beat them this way).
California Specific
It may seem obvious to many, but be sure that the courses and exam prep materials you are studying are California specific. There are a lot of generic practice exams and courses available online that won’t prepare you for the State Exam or won’t allow you to even sit for the exam. Sign up with an approved California provider and make sure you are taking the right course for the license you want.
The State Exam
The State requires that you complete specific pre-license training BEFORE you can sit for the State Exam. The Certificates you earn from these courses are your “ticket” into the State Exam which are currently given at state office locations in San Diego, Los Angeles and Sacramento.
On the day of the exam, you need to bring proper identification including a current valid driver’s License, passport, military ID, etc. The State Exam is computer-based. There are 75 questions for the Life Only License; 75 for Accident & Health and 150 for Fire & Casualty.
You must score 70% or better to pass. If you fail, you can retake the exam 3 consecutive times for a fee of $41 each. Your 4th try requires a 30 day waiting period. Of course, if you follow the advice of this article you won’t need to worry about failing.
You can schedule the State Exam online at any time . . . just fill out the required license application. But, you must complete the required pre-license training courses needed for the license you want BEFORE taking the exam. And, you need additional time to tackle the remaining procedures we recommend to prepare yourself. Bottom line? Leave at least three weeks before scheduling an exam date.
Test Taking
There are some universal rules to taking any license exam. Basically, you need to become familiar with the testing mentality.
· Make sure to read every single word in both the questions themselves and the provided answers! There are people who fail simply because they didn’t read the question properly!
· Make sure that you understand the gist of the question itself…what are they getting at in the question? In order to answer a question properly, you must understand the idea behind the question!
· Be familiar with the format of the exam. The State Exam is taken on computer. See a sample of how it works on the State’s website here . . . http://www.insurance.ca.gov/sample-test/Sample_Questions-General.htm
· Don’t rush the exam. You have up to 3 hours for the Casualty or Life/Health Exam. Answer all the questions you know. Flag questions you are unsure of or skip them until later. Watch for words like except or not.
Studying Books, Course Content & State Publications
The State Exam is very broad in coverage. There will be many questions on codes, ethics and other insurance topics that you may never need or experience throughout your insurance career. Nonetheless, you have to know them to pass.
Then there are hundreds of pages of pre-license course materials (your 20, 40 and 52-hour training courses). In fact, the State dictates what needs to be covered in all pre-license courses and they publish “Educational Objectives” for each. Now, you would think that if you studied these courses and the “objectives” real hard you would be prepared for the exam. . .right? NOT. Don’t spend a lot of time here.. Sure, you need to read the materials to earn your Pre-License Certificate(s) and there are basics you can learn from these courses, but it is highly doubtful they will play a major role in helping you pass the State Exam.
Cram Courses
There are also dozens of generic guides and cram courses which say they are designed specifically to help you pass the State Exam. Save your money and time. Sure, some may provide some guidance, mostly on test-taking techniques I discussed above, but you still have to know specific learning points to pass. That cannot be condensed into a small book or even an 8 hour cram course. I know, I have taken these classes and wish I had spent the time studying instead.
An Exam Prep Workbook Is KEY!
OK, we’re down to the key to passing the State Exam. Find a proven Exam Prep Workbook. We cannot emphasize how important this is to passing. It’s almost too simple, yet license candidates tend to dismiss the effectiveness of practices exams. DON’T.
A typical exam prep workbook is jammed with up to 1,000 questions and answers, i.e.practice exams. Of course, there are practice exams, and there are practice exams. As I said, find a proven system and ALLOW UP TO TWO WEEKS TO FULLY COMPREHEND AND RECALL THE QUESTIONS AND ANSWERS IN THEIR WORBOOK. Simply reading the workbook one or two times is NOT ENOUGH. Study and recall EVERY QUESTION at least 10 times or more. If you are getting the same questions wrong, highlight them and study them even more.
Don’t Schedule The Exam Early
Don’t schedule the State Exam until you have time to study your Exam Prep Workbook Practice Exams. Your boss and others may be pressuring you to take the State Exam ASAP after your online training, but until you can recall the questions and answers, your chances of passing are slim
Well, that’s it . . you now know how to pass the Insurance License Exam. But, I have a warning: If your mental focus is just to pass the exam, you need to re-focus. Plenty of people pass their exam only to lose their license or get sued making stupid mistakes. Knowing the answers to a bunch of exam questions is not enough . . . you have to know what you are doing with that license and you need to acquire a sense of responsibility and ethics to win customers and stay out of trouble. While these are not the subject covered here, know that they are as much a part of your career as getting your license. So, refer to your pre-license course materials for basic knowledge and use them for reference often. Always expand your knowledge and keep up on current events in the industry.
I wish you the best of luck in a very rewarding field.
How To Become A Realtor
People from all aspects of the active and retired world decide that becoming a Realtor for many reasons. Many enjoy working closely with the public, being able to answer to their own schedules, and seeing a higher reward for their efforts. Some are interested in buying real estate for themselves and think that as an agent they will have better access and knowledge to the deals found in the marketplace. Take a little time to become familiar with the realities of becoming a Realtor before you jump in and become licensed.
Becoming a Realtor is very expensive. The cost of licensing is high and you will be expected to spend a considerable amount of money before you can see a profit. The process is time consuming. When first becoming a Realtor, you must weigh the importance of ten important expenses to see which you are able to initially afford. Some of the fees involved with working as a Realtor are the fee to join a local Multiple Listing Service (MLS) and the fees to join a local board of Realtors. There are also ongoing fees for local real estate boards (quarterly or monthly). There are other general expenses of doing business, which will vary depending on the agency you work for. These expenses can include all of your postage, phone calls, copies, advertising and other kinds of overhead. You must also have a presentable and dependable four door vehicle and additional auto insurance to cover increased liability for business passengers. There are many expenses when working as a real estate agent.
You will probably work evenings and weekends and your hours can be quite long. You can make your own hours and you should not allow clients to control your time. There will be many occasions when you can only show a home or take a listing appointment in the evening, or when a weekend is the only time you can write up an offer. Your commitment to success will greatly depend on your success especially when you initially are becoming a Realtor. As well as realizing the dedication of time you must acknowledge you are not merely selling a house but you are locating and acquiring a properties and that the purchasing of a home is an extremely personal and sometimes frightening undergoing for people. Approaching becoming a Realtor merely as a sales job is a big mistake. Of course, you’ll sell some properties, but will your clients tell their family and friends that you did a fantastic job for them? or that you clearly only had interest in making the sale.
Referrals from past clients make a good real estate agent’s income grow each year. It takes extremely hard work and a great sense of devotion to get those referrals, stay with each job to its completion no matter how small the potential earnings for you now, the pay off later can be rewarding.
FOREX 101: Make Money with Currency Trading
For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970′s, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.
FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.
Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.
How FOREX Works
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.
Marginal Trading
Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term “lot” refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.
EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)
When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
Investment Strategies: Technical Analysis and Fundamental Analysis
The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency’s future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.
A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country’s economy depends on a number of quantifiable measurements such as its Central Bank’s interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.
Make Money with Currency Trading on FOREX
FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.
Trading Currency Through Online Forex Brokers
Access to foreign exchange (forex), the most extensive market on the planet, is generally through an intermediary known as a forex broker. Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex trading performance.
Financial institutions are generally the most influential in the forex market through high-volume, large-value forex currency transactions. Historically, banks enjoyed monopolistic access to the forex markets, but through the Internet, any forex speculator can also enjoy 24 hour access to the market via a forex broker.
Secure web connections today allow many forex traders to work from home, where ready access to news and other technical advice informs decisions on what forex positions to take. Similar moves are being made by stock brokers, who are also moving out of banks and other traditional institutions.
Your needs in the market will influence your choice of forex broker. Online forex brokerage firms, known as houses, provide those new to the forex market with detailed research, advice and simulators to learn how to use their forex trading tools. The experienced online forex trader is catered to by other broking houses, with in-depth advice, but less focus on forex trading instruction based on the assumption that you are familiar with the forex market. To make an informed choice, it is advisable to trial several differing online forex broking houses and their trading tools to find the best fit for your needs.