大学会计英语课件陈庆柏 主编978 7 81134 917 7unit 19.ppt

Account analysis is the term for reports that give specific details on all elements involved in servicing a specific account for a period of time. These reports also show the bank’s profit or loss on the account. A typical account analysis calculates the customer’s average daily book balances less average daily float, which is the amount of deposited checks in the process of collection 19.5 Account Analysis The average book balance minus float is then reduced by the required reserves that the bank must maintain against the account. The bank then applies an earnings credit rate, representing the value of the balances to the bank. The earnings credit rate usually varies from month to month, depending on the bank’s cost of funds and on conditions in the money market. 19.5 Account Analysis If the monthly earnings credit exceeds the total charges, the account is profitable to the bank. On the other hand, when there is deficiency the account has operated at a loss, and the officer responsible for the account expected to ask the customer for additional balances or to charge the account directly. This system of account analysis cannot and should not be applied to every checking account at every bank. However, it is extremely useful for large, active, commercial accounts that use a wide range of bank services. It helps both the bank and the customer understand all the factors that make an account relationship profitable or unprofitable. 19.5 Account Analysis Bank accounting systems are designed to record, present, and interpret all the information that results from each day’s transactions. The figures are essential to the bank’s planning function, are required by federal and state regulatory authorities, and are expected by the bank stockholders and customers. The public cannot be expected to place confidence in a bank that cannot provide data on its profitability. The financial strength displayed by each institution is a benchmark used by customers to determine the b