Spain’s Balance of Payments: A Detailed Analysis
Item 11: External Sector
11.1. Structure of the Spanish Balance of Payments
The Balance of Payments represents the operations a country places with the rest of the world in an accounting document with economic transactions made over a period of time. Currently, the model which is followed is published by the IMF. It is made up of 4 sub-balances:
- Current Account: Includes all external transactions that may affect the income of a country.
- Trade Balance: Reflects the costs and revenues associated with
Fairchild Company Cash Flow Statement 2012
Fairchild Company | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 2012 | ||
(Indirect Method) | ||
Cash Flows from Operating Activities | ||
Net income…………………………………………………………….. | $ 810 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense ($1,200 – $1,170)………… | $ 30 | |
Gain on sale of |
Inventory & Accounting: Transactions & Financial Reporting
Inventory Accounting
Purchasing Inventory
- Purchases
- Debit Inventory
- Credit Accounts Payable or Cash
- Purchase Return
- Debit Accounts Payable or Cash
- Credit Inventory
- Purchase Shipping
- Debit Inventory
- Credit Cash
- Pay for Purchase
- Debit Accounts Payable
- Credit Cash
- Credit Discount (if earned)
Impact on Inventory
- Purchasing Inventory: Debit
- Returning Inventory: Credit
- Purchase Shipping: Debit
- Purchase Discount: Credit
Sales Transactions
- Sale
- Debit Accounts Receivable
- Credit Sales
- Debit Cost of Goods Sold
- Credit Inventory
- Sales
Key Accounting Principles and Equation Practice
Which of the following is not a step in the accounting process?
- Recording.
- Verification.
- Identification.
- Communication.
Which of the following statements about users of accounting information is incorrect?
- Regulatory authorities are internal users.
- Taxing authorities are external users.
- Present creditors are external users.
- Management is an internal user.
The historical cost principle states that:
- Only transaction data capable of being expressed in terms of money should be included in the accounting records.
Accounting Principles and Financial Statements: Key Concepts
Accounting Concepts and Principles
The accounting concept that maintains each organization is separate from all other organizations and individuals (including the owner) is known as the economic entity assumption.
Bonds and Liabilities
A bond with a face value of 100,000 and a quoted price of 99 ¼ has a selling price of 99,250.
If total assets are 225,000 and stockholder’s equity is 150,000, total liabilities would be 75,000.
Final Company issued a 20-year mortgage payable on January 1. Final is required
Read MoreLeverage, Risk, and Self-Financing Strategies
Item 10: Leverage and Risk
Break-Even Point
The break-even point helps us determine the sales level needed to cover all costs. It also reveals the potential loss of sales or profits when considering alternative balance sheet values.
There are two types of costs:
- Fixed costs: These are independent of production volume.
- Variable costs: These vary directly with the volume of production.
The break-even point in units (Q) is calculated as:
Q = Fixed Costs
Price – Variable Costs
Operating Leverage
Operating leverage
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