Credit or Debit, Sir? The usage of credit and debit cards have dramatically increased in the recent years. There was a projected total of 160 million credit card holders in 2012 and 654 million debit cards in 2015 (WalletHub/Nasdaq). Both credit and debit cards are methods of payment that do not require you to have cash on hand. Even though both a credit and debit card accomplish the same thing, there are many differences between the two methods of payment that could sway a customer’s choice towards
DEBIT AND CREDIT RULE NO. 2: For every debit, there is a credit. Paying close attention to the previous topics discussed, this eternal rule in accounting has an identical goal with that of the basic accounting equation: KEEP BOTH SIDES EQUAL. Whatever happens. The terms debit and credit are used in recording business transactions which will indicate the increases or decreases of a specific account, be it an asset, liability, owner’s equity or capital, revenue, expenses and the owner’s drawings
2.2. Usage of Credit Cards versus Debit Cards Undoubtedly, if credit cards are compared to debit cards, then studies have shown that there are some perceived barriers that create hindrances in the adoption of credit cards far and wide. Rysman (2009) used the data from Survey of Consumer Finance, conducted by Federal Reserve Bank and applied Regression analysis technique to control all the related explanatory variables. Results confirmed that age and income are strong predictors in payment choice
I am going to demonstrate that there are at least three major flaws in Omar Abdullah Zaid’s article. First, the financial records that he claims were developed around 622 AD by the Muslims were in fact in existence thousands of years prior to that date. Secondly, much of his article is based on his and others opinions of what accounting records were developed, but he proves no evidence that these originated from the Muslim culture. Thirdly, the journals or lists that he discusses as the basis
clerks make a number of calculations every day and they must be comfortable using computers to compute and record data. In small firms, bookkeeping clerks and bookkeepers are accountable for accounts. They maintain all transactions and post debits and credits. Bookkeeping clerks prepare financial statements and produce reports and summaries for managers and supervisors. Bookkeepers produce bank deposits by putting data together from cashiers, balancing and verifying receipts, and sending checks
Frank’s diary, however, wasn’t the first published piece that showcased how German’s felt about other cultures. In Gustav Freytag’s Debit and Credit (1855), the German middle class is shown in a positive light while hating the Polish and the Jewish people. Freytag writes how the Jewish people are seen as inferior and a threat, but the Germans are presented and shown as superior and inferior to the Polish and Jewish people. He also writes that the Polish people have no culture and are not able
bookkeeping developed in fourteenth century Italy instead of ancient Greece or Rome, accounting scholar A.C. Littleton describes seven "key ingredients" which led to its creation. Those key ingredients consisting of private property, capital, commerce, credit, writing, money and arithmetic. Most of these did not exist in ancient times. This alone would not lead someone to create a complete and involved accounting system. Writing, for example, is as old as civilization itself, but arithmetic - the systematic
“In many cases a person’s clothing revealed his occupation” (Emerson, 186). Which means that the clothes you wear are associated with the job you have. Clothes weren’t only used to show a person’s job, “clothing was also used to distinguish persons who were considered inferior” (Emerson, 186). Jobs in the sixteenth century, considering they did not have modern technology and knowledge, were different than they are today. Depending on your occupation that would decide your income, rank in society
the accounting department. The second step is entering the transactions of the period in appropriate journals. This step consists of taking the journal entries, assigning each to an asset, liability, equity, expense or revenue account(s) to debit and credit. This can be done by almost anyone. I have had jobs where the bookkeeper does the journal entries and figures out which accounts are affected. I have also had jobs where anyone from a receptionist to a staff accountant does this step. If the
The origin of accounting primarily consists of the establishment of human society and commerce. The idea of accounting is an old practice that has been dated since the Mesopotamia era. During this era, trade between tribes around Mesopotamia required records to be kept on stone and clay tablets. This took place at least 3600BC, where in those times, the ‘scribes’ who possessed a knowledge of writing also served as bookkeepers. Overall, accounting has made significant contributions over the past five
Why is the United States not up to date with Europe in issuing safer credit and debit card transactions? Europe has had the chip and pin credit and debit cards since the year 2004. These new security chip cards started to become a trend in the year 2014 in the United States. The United States has over ten million credit card terminals so it was hard to get such a large market to adopt to a new type of technology. There are three sectors of the market that had to work together which were the retailers
we inhabit. Thousands of years before the emergence of organized accounting, the Mesopotamians were beginning to increase agriculture production, and as they did the civilization began to seek structure in the recording of transactions for extended credit terms on gold and silver. Those responsible for this organization and coding of trades and sales in the area were referred to as scribes. These scribes noted the transaction, usually on a clay pad, and ensured the agreement followed all rulings by
How the Merchants of Venice Created Modern Finance, Jane Gleeson-White explores the development of double-entry accounting from its ancient roots up to its impacts on modern day society. She shows that the effects of double-entry accounting are widespread and encompass almost every aspect of life, not just those involving accounting and finance. Gleeson-White delves into topics ranging from the economic system of capitalism to environmental degradation. She even includes a brief psychology discussion
of Using Credit Cards and Debit Cards Today, almost everyone has their credit cards or debit cards. It can be used in the malls, shopping online, buying tickets, and much more. Most of the time, people use it because it is more convenient because you do not have to bring cash which could be easily stolen and used; unlike cards where there would still be a number of security features. There are two types of cards that are commonly used for cashless transactions. First is the credit card which
Debit Card A debit card (also known as a bank card or check card) is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money comes directly from the user's bank account when performing a transaction. Some cards may bear a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a payer's designated bank account. In some cases, the primary account
you really need a credit card? There are many people who will claim that everyone needs a credit card, you just need to learn to use it responsibly. They will say there are many good reasons to have a credit card. They are safer than cash, or you need to have at least one for a financial emergency. You also need them to help build your credit rating, and some will tell you that a credit card is mandatory for certain purchases. There are even those who will tell you that credit cards, when used properly
related to our company’s finances is customer credits and debits. On the income statement the T-account method is used for debit and credits for our customer’s account. A debit is an entry that increases an asset or expense account, or decreases a liability or equity account. The debit is entered on the left side of the T-account. A credit is an accounting entry that increases a liability or equity account, or decreases an asset or expense account. The credit is entered on the right side of the
true that with a credit card, an irresponsible student may get themselves into debt, but those types of people should be more educated on credit cards and the trouble they can get themselves into when considering getting one. To those that can handle the responsibility, a credit card can be a very useful item to college students due to the mass amount of purchasing the college student has to do, the most expensive item being books. However, if a credit card is off the list, a debit card is the safer
ways to spend such credit cards and PayPal. You could even send someone money over Facebook and Snapchat! There are various advantages to each payment method. Some people choose cash to help control spending, others prefer using credit cards to earn reward points. There are many
The Vatican City, also known as the Holy See, is considered to be the smallest country in the world. It occupies an area of 0.2 sq. miles and is completely encircled by Rome. The Vatican City has served as a major spiritual centre for millions of Catholics all over the world and has also become famous as an extremely popular tourist magnet because of the presence of some of the most popular attractions of Rome such as the Sistine Chapel, St. Peter’s Basilica and the Vatican Museums. The city itself