Understanding Theoretical vs. Capitalization Value & Tax Implications
Understanding Theoretical and Capitalization Value
Theoretical Value: This represents the value each partner would correspond to if society were closed out. The theoretical value is calculated as follows:
Theoretical Value = (Total Social Capital + Reserves) / Number of Shares
Theoretical Value = Total Social Capital / Number of Shares + Reserves / Number of Shares
Theoretical Value = Nominal Value + Reserves / Number of Shares
Increased reserves cause the theoretical value to rise above the nominal
Read MoreClearing, Settlement & CNMV in Spanish Markets
Clearing and Settlement
Clearing and settlement are fundamental processes in financial markets. After a trade is executed, the record is submitted to the clearing agency, which matches the buyer and seller records and confirms that the counterparts agree to the terms. The agency reports discrepancies to traders in case the reports do not match, who then try and resolve them. After the clearing process is performed, through settlement, agencies fulfill the delivery requirements of the securities object
Understanding Business Cycles: Sales, Billing, and Payroll
Classification of Lists
- Finished Products: Goods originating from a manufacturing or processing intended for sale.
- Product in Progress: Goods that have not been fully completed to produce finished goods.
- Raw Material: Properties acquired with the goal of making finished goods.
- Factory Supplies: Inventories required to carry out the production process.
- Packing Material: Materials used for packaging the final product.
- Goods in Transit: Purchased goods for which the property is owned.
Billing Process
The
Read MoreACC 202 Test 1: Key Topics and Exam Breakdown
There are 40 questions on the test. The specific topics for each question are as follows:
Chapter 1: 9 Questions
- Customer Value Propositions: Customer value propositions tend to fall into three broad categories: customer intimacy, operational excellence, and product leadership.
- CMA Ethical Requirements: Competence, Confidentiality, Integrity, Credibility.
- Difference Between Financial and Managerial Accounting: Financial accounting serves the needs of those outside the organization, whereas managerial
European Economic Growth & 1973 Oil Crisis
European Union: Period of High Growth (1950-1973)
The period of high growth (1950-1973) in Europe is known as the Golden Age of European Growth. There was a convergence (catching up) in GDP levels (income levels). Countries that started in 1950 with lower levels of income grew faster than countries that had higher levels of income.
Reasons for High TFP Growth
- Classical Growth Model (Solow model): Explains economic growth by investing in capital, specifically physical capital, with TFP being exogenous.
Spain’s Economic Shift: From Autarky to Developmentalism
Spain’s Economic Shift: Autarky (1939-1959)
One of the main objectives of the first stage of the Franco regime was to achieve economic self-sufficiency (autarky). This promoted an economic policy that advocated isolation from the outside and state intervention in the economy, rather than the free market. The autarkic economy had three main areas of action:
Regulations on Foreign Trade
The first area was the regulation of foreign trade. Imports and exports were to be completely controlled by the state.
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