Financial Accounting and Budgeting
Accounting:
measuring technique or echos economic and financial records.
Echo Economy:
the customer pays on a deferred basis. Eg loans.
Financial Echo:
the customer pays in advance. Example: beep card. Cash payment echos both simultaneously.
Right key:
value that is assigned to a business (image, customers, etc..)
Equity:
contribution of partners, capital, reserves, profit for the year.
Accounts T: When an asset increases in the D on the H decreases. When a person increases the H in the D decreases.
Understanding Economic Indicators and Their Impact
Economic Indicators: Their Significance
Economic indicators provide crucial insights into the state of an economy for governments, businesses, and individuals. They reveal trends in production, inflation, and unemployment, enabling informed decision-making.
Key Benefits of Stable Economic Indicators
Controlled Inflation
- Enables families to manage expenses effectively.
- Provides stability for businesses by minimizing price fluctuations for raw materials and inputs.
Low Unemployment Rates
- Boosts family income
Economics: Principles and Applications
1.1 Introduction to Economics
The word “economy” originates from the Greek words “Oiko” and “nomos,” meaning “housekeeping” or “household management.” For centuries, economy referred to a set of rules for wise household management. In modern times, this idea has become intertwined with economic politics.
Classical economics defines the field as the study of wealth creation, distribution, and consumption to meet societal needs. Other perspectives emphasize prices and their fluctuations, or the management
Read MoreMacroeconomic Concepts: GDP, Income, and Expenditure
Gross Domestic Product (GDP)
Market value of all final goods and services produced within a country’s borders over a specific time period.
- Valued at market prices, including indirect taxes (Ti) and excluding subsidies (Sb).
Consumption (C)
Household spending on goods and services to meet current personal needs.
- Includes durable and non-durable goods and services.
- Excludes new home purchases (included in Investment).
Investment (I)
Gross capital formation, or business spending on fixed capital acquisition,
Read MoreBusiness Optimization: Value Chain, Work Organization & Management
The Value Chain
One of the objectives for increasing competitiveness is optimizing the value chain. This analysis breaks down business activities into different parts. There are three basic elements:
- Primary Activities: Those related to developing the good or service.
- Support Activities: Those that support primary activities, such as administration.
- Margin: The difference between the total value and the total costs incurred to create that value.
Work Organization
Work organization is a set of rules designed
Read MoreMoney: Origins, Types, and Modern Economic Roles
Money: Origin and Types
Commodity money has inherent value equal to its currency unit value.
A. From Commodity to Paper Money
Fiat money has minimal commodity value but is accepted due to public trust and government decree.
B. Money in the Current Financial System
Modern paper money is backed by confidence, not precious metals. Deposit money, like bank accounts, settles debts.
- Checks mobilize money but don’t create it.
- Credit cards are payment methods, not money.
- Bank money is a bank’s debt to depositors,