What Is an Electronic Transfer Account (ETA)? An electronic transfer account (ETA) is a bank account for federal payment recipients who do not have checking or savings accounts. ETAs provide an alternative to receiving federal payments by check for Social SecuritySSI, and the Railroad Retirement Board. ETAs are also available for Office of Personnel Management…
What Is Physical Capital? Physical capital is one of what economists call the three main factors of production. It consists of tangible, human-made goods that assist in the process of creating a product or service. The machinery, buildings, office or warehouse supplies, vehicles, and computers that a company owns are all considered part of its…
What Is an Allowance for Bad Debt? An allowance for bad debt is a valuation account used to estimate the amount of a firm’s receivables that may ultimately be uncollectible. It is also known as an allowance for doubtful accounts. When a borrower defaults on a loan, the allowance for bad debt account and the…
Typically, deflation is a sign of a weakening economy. Economists fear deflation because falling prices lead to lower consumer spending, which is a major component of economic growth. Companies respond to falling prices by slowing down their production, which leads to layoffs and salary reductions. This further lowers demand and prices. However, for a period…
Deflation is a decrease in the general price level of goods and services in a country. It is the opposite of inflation, which is when general price levels in a country are rising. In the short-term, deflation impacts consumers positively because it increases their purchasing powerallowing them to save more money as their income increases…
Many investors prefer to own physical gold and silver instead of exchange-traded funds (ETFs) that invest in these precious metals. While the tax implications of owning and selling ETFs are very straightforward, not many people fully understand the tax implications of owning and selling physical bullion. Below is a description of how these investments are…
What Is a Foreign Bank Branch? A foreign bank branch is a type of foreign bank that is obligated to follow the regulations of both the home and host countries. Because the foreign bank branch has loan limits based on the total bank capital, they can provide more loans than subsidiary banks. That is because…
What Is the Look-Ahead Bias? Look-ahead bias occurs by using information or data in a study or simulation that would not have been known or available during the period being analyzed. This can lead to inaccurate results in the study or simulation. More importantly, a look-ahead bias can unintentionally sway simulation results closer into line…
WHAT IS THE Non-Resident Entertainers’ Tax Non-resident entertainers’ tax is a state tax levied against performers whose legal residence is outside of the state where the performance is given. BREAKING DOWN Non-Resident Entertainers’ Tax Non-resident entertainers’ tax is a type of state tax that requires a certain percentage of any gross earnings from a performance be…