Accounting Terms Glossary: Definitions & Examples
Accounting Terms Glossary
Shareholders
Category: Equity
Balance: Lender
Definition: Represents the non-integrated capital subscribed by the shareholders of a company.
Payables
Category: Passive
Balance: Lender
Definition: Represents overall indebtedness.
Advancement Salary
Category: Active
Balance: Debtor
Definition: Represents the payment of wages to an employee before the due date.
Rents Collected
Category: Gain
Balance: Lender
Definition: Represents the collection of rent.
Advance Rental Income
Category: Passive
Balance:
Managerial Control Tools and Techniques
Unit VII: Control Tools
Basics
Control involves measuring and correcting individual and organizational performance to ensure alignment with plans. This includes measuring performance against goals, detecting deviations from standards, and taking corrective actions.
Control activities are often associated with measuring achievements. Tools like budget expenditures, inspection records, and records of lost man-hours serve as measurement tools, indicating whether plans are effective. Persistent deviations
Read MorePromotional Mix and Product Life Cycle
Product Life Cycle
Introductory Phase
The new product is barely known, and initial sales are low. Thus, companies are investing heavily in advertising, leading to increased costs and a more expensive product. The company can experience challenges in this phase.
Growth Phase
If the product is successful, sales increase rapidly. Other competitors begin to produce it, and its supply increases. At this stage, firms try to differentiate their products from those of competitors to increase their sales. The
Read MoreMicroeconomics Q&A: Market Structures, Elasticity, and Efficiency
Question 1 In monopolistic competition, in the long run firms earn a normal profit and excess capacity have
Question 2 Advertising costs are fixed costs and cost per unit decreases as production increases.
Question 3 In the model of kinked demand curve, demand is less elastic well below the market price because if the company lowers the price, other companies lower their prices.
Question 4 In a dominant duopoly, the dominant firm acts as a monopoly, and produces output where marginal revenue equals
Read MoreBanking Operations: Loans, Credit Accounts, and Bills of Exchange
Mortgage Loan
A mortgage loan is a loan from a bank that is guaranteed by a mortgage on a property, usually the same property being financed.
Features:
- In case of default, the bank may attach to the property, and it will be sold at public auction.
- It is formalized by a public document, signed by the person who granted it, in a transaction where a notary certifies the contents.
Expenses of Borrower:
- Opening and Study Commission
- Notary expenses
- Interest
- Subscription of life insurance
- Commission of early termination
- Public
Understanding Finance: Objectives, Scope, and Impact
Concept of Finance
Administrative science that studies the movement of cash. Finance is the planning of financial resources for implementation in the most optimal way. It also encompasses research on financing sources for acquiring resources for enterprises. Finance seeks to reduce investment uncertainty, all with the aim of obtaining higher earnings per share or profitability for a company.
Objectives of the Finance Function
- Planning business growth, advancing tactical and strategic requirements.
- Raising