Explain the following term/concept.1. Depositor2. Deposit3. Interest o

1.	Explain the following term/concept.1. Depositor2. Deposit3. Interest on deposit4. Deposit Receipt5. Renewal of deposit6. Repayment of Deposit
Answer» 1. The person who keeps deposits with the company for a fixed period of time is known as ‘Depositor’. 2. Deposit is a short-term source of finance of the company and it is used in order to satisfy the short-term working capital needs of the company. 3. Interest on deposit refers to the return on the investment of money in deposits. 4. A deposit Receipt is an acknowledgment of deposit money accepted by the company. 5. Renewal of Deposit means accepting the same deposit for an additional period of time after its maturity. 6. Refunding the amount of deposit on the maturity of tenure of deposits is known as ‘Repayment of Deposit’.

Explain the following term/concept.1. Depositor2. Deposit3. Interest on deposit4. Deposit Receipt5. Renewal of deposit6. Repayment of Deposit

Answer»

1. The person who keeps deposits with the company for a fixed period of time is known as ‘Depositor’.

2. Deposit is a short-term source of finance of the company and it is used in order to satisfy the short-term working capital needs of the company.

3. Interest on deposit refers to the return on the investment of money in deposits.

4. A deposit Receipt is an acknowledgment of deposit money accepted by the company.

5. Renewal of Deposit means accepting the same deposit for an additional period of time after its maturity.

6. Refunding the amount of deposit on the maturity of tenure of deposits is known as ‘Repayment of Deposit’.