Accounting and Finance Questions

Transfer payments are included in GDP and not in GDP.

The Internal Rate of Return (IRR) is defined as the measure of an investment’s rate of return. It is also called the discounted cash flow rate of return.

Payroll is defined as its a remuneration given for work done by individuals on daily,monthly,weekly etc....

The words "asset" and "liability" are two very common words in accounting. Liabilities are legally binding obligations that are payable to another person or entity. Accounts payable, loans, mortgages, deferred revenue,... come under liabilities.

Fractional reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash on hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties.