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It can be a bond or a cash payment, but either way, the money is locked up and not available to use for operations, or gone.
by thinkcomp 15y ago
It can be a bond or a cash payment, but either way, the money is locked up and not available to use for operations, or gone.
- chalst 15y agoIt will feature on your balance sheet as an asset, though.
- ataggart 15y agoWhich, if true, only further demonstrates the nonsense that is modern accounting practice.
- tptacek 15y agoHuh? Why? It's your money. If you wind down your business and settle all your outstanding transactions --- which, if you're honest, you should be able to do --- the state hands it right back to you. Not only that, but you get to collect the interest on the money. It's a bond, not a fee. Why wouldn't it be listed among your assets? It's part of the liquidation value of your business!
- AntiVigilante 15y agoit's part of preventing small fry from getting in. you could easily base the bond on volume. the more transactions you do the more you must put in bond. this again perpetuates the unnecessary division between individual and institution.