3 Types of Credit Cards

Summary
The article I have read is about three types of credit card. Every credit card has its advantage and disadvantage of using it. There are hundred kinds of credit cards in the world, but this article concludes them into three types: Secured Credit Cards, Rewards Credit Cards, and Low or No Interest Credit Cards. Secured credit cards are for people who ever had difficulty with your credit card use in the past. Rewards Credit Cards are for people who prefer to do most of their spending and purchasing on a credit card every month. Low or No Interest Credit Cards are for people who want to pay existing debt down or keep their credit card purchases at reasonable interest rates would enjoy a low or no interest credit card.

Connection
In chapter fourteen, we learn the basic knowledge of credit card. The advantage and disadvantage of the credit card, and the way to use it are connected to this chapter. But in this chapter, only some of the basic knowledge of credit card is shown. Therefore, more articles we read, more knowledge we can accept. Like this article, it has more details about the types of credit card than the book. In addition, while credit card is more and more popular, the way of using it is more and more important.

Reflection
To most of the people, credit cards are parts of their lives. People may not have Accounting twelve, but they must have credit cards. In fact, people use credit cards more than using real money. Also, the types of credit card are very important to us, because everyone is different in financial position. Some are rich, some are poor. Some doesn’t care the fee of the credit card, some doesn’t use credit card often. That is the reason why I pick this article to put into my blog. We should not miss anything helpful to us.
Article: http://www.creditorweb.com/articles/3-types-of-credit-cards.html

IS CASH DISCOUNT A USEFUL THING？

Summary
For the accounting blog assignment, I have searched an article called “IS CASH DISCOUNT A USEFUL THING?” “Following the civil war, and for that matter right up to recent years,” said a well-known business man, “there was no really scientific method of granting credit in general vogue.” This was largely the result of a lack of sufficient banking facilities, which made the distributor his own banker more or less, and which made him introduce the cash discount to encourage quick payment. With the growth of the country’s banking system, the size of the cash discount offered has dwindled.

Connection
In chapter 12, we have learned the credit discount earn. Usually companies purchase goods, they don’t pay by cash immediately because they don’t have such a large amount of cash in hands. They pay on the retail companies’ Account Receivable account. By the time the retailers sell their goods, but didn’t get the money. So actually they want buyers pay the money as early as possible. Therefore, they make a rule, such as credit discount earn. For example, 2/10, N30 means the due day is in 30 days after the transaction is made, and if people pay off their accounts in 10 days, they actually get a 2% refund back. This is a win win situation to both the buyer side and the seller side.

Reflection
Really, this is a good idea to all the companies. I would like to pay off the entire amount in the discount period. This is the best way to encourage people to pay off their accounts. But now I have a question. If people pay off their amount and get the discount, will the seller loss a huge amount of money? I think a complicated question such like this one, should be solved by my self when I learn more about accounting. Anyway, while people purchase goods, pay off earlier, refund better. But this kind of transaction only appears between companies to companies.

Logistics, Inventory Control, and Supply Chain Management

Summary
The article I read is about logistics, inventory control, and supply chain management. Many argue that the focus point of successful supply chain management is inventories and inventory control. The article brings up these questions: What factors drive inventory costs? When might it make sense to keep larger inventories? Having too much inventory (which can lead to high costs) versus having too little inventory (which can lead to lost sales). Firms use one of three general approaches to manage inventory. First, most retailers use an inventory control approach, monitoring inventory levels by item. Second, manufacturers are typically more concerned with production scheduling and use flow management to manage inventories. Third, a number of firms (for the most part those processing raw materials or in extractive industries) do not actively manage inventory.

Connection
In chapter 11, we learned about the basic knowledge of inventory. This article tells about how to control the inventory appropriately for the company, and supply chain management. I remember the doughnut question we did last Friday. One of the questions is, what might happen if a company has too many doughnuts per day and has too less doughnuts per day (The question seems like this). So the effect is evident. The company might remain too many doughnuts, so that it would increase some of the expenses. Also the company might lack doughnuts to sell, so that it affects the customer.

Reflection
After I read this article, I noticed that it is very important to control the amount of inventories. As a retail store, inventory determines everything of the store. For example, if there is nothing to sell in superstore, why would we go there? And why people let an empty company such as that “empty superstore” exists? Therefore, inventory must be organized properly, appropriately, and clearly.