Accounting for Advances, Bonuses, Discounts, and Depreciation
Advances
- Advances to Suppliers: Giving money for future acquisitions, creating a credit (from the client’s perspective).
- Advances to Customers: Giving money on account for future purchases, creating a debit (from the seller’s perspective).
VAT (Value Added Tax)
The VAT buy/sell books reflect whether your balance is a debtor or creditor. When the tax debit is greater than the tax credit, you are in debt. The balance reverses in the opposite scenario.
Bonuses
- Awarding a Bonus: Involves an increase in the
Understanding Market Concepts and Research Techniques
Item 14: Market Concepts and Classes
From a marketing point of view, a market must be understood as a set of persons (natural or legal) that meet the following requirements:
- They feel a need.
- They have buying power.
- They are willing to buy.
Markets can be classified according to various criteria: the type of demand, the level of competition, opportunities, and geographic expansion.
Types of Demand
Depending on the type of demand, there are different market classifications:
- Consumer Market: These markets
Working Capital Management: Funding and Financing
Policy Coverage in Working Capital Management
Funding requirements, from the point of view of temporality, have the following classification:
- Permanent: The resources at all times of operation of the business are needed. Their absence means significantly altering the nature of operations.
- Temporary: These are, by their nature, flexible and can be reduced according to seasonal needs or decisions taken by the administration.
The hedging policy establishes the criteria that permanent needs be funded long-
Read MoreEconomics: Key Concepts and Principles
Economics: Key Concepts
Economics: Social science that analyzes the most efficient way to use our scarce resources.
Scarcity: We have unlimited wants but limited resources.
Opportunity Cost: Most desirable alternative given up when you make a choice.
Factors of Production: Land, labor, capital.
Absolute Advantage: The producer that can produce the most output or requires the least amount of inputs (resources).
Comparative Advantage: The producer with the lowest opportunity cost.
Terms of Trade: Both countries
Read MoreEconomic Participants, Roles, Taxes, and Production Factors
Economic Participants
Everyone who produces, consumes, or distributes products participates in the economy. We can divide the participants into three types: households, businesses, and the government.
- A household is all of the people who live together. Normally, a household is the same as a family. However, someone who lives by himself is a household, and so are friends who live together.
- Businesses buy and sell goods and/or services.
- The government includes central, regional, and local government.
The
Read MoreAgricultural and Industrial Sector Evolution Analysis
Evolution of the Agricultural Sector
Until the end of the 1950s, this sector was defined as traditional agriculture with two basic features:
- A factor endowment characterized by labor-intensive and poorly paid work, and low capital-output.
- Balanced food supply and demand, with traditional agricultural products playing a key role.
With the economic growth of the 1960s, these traits altered:
- Migration from the countryside to the city implied a decrease in the agrarian population.
- Urbanization and a rising