The definition of amortization in economics is the depreciación or reduction in the value of an asset or liability. For its part, in business terms, the concept of amortization has several meanings, although always associated with the value of a good or passive with the useful life of the same. Amortization refers to the loss … Read more
An actuary is a person who evaluates various types of riesgoand its probabilities of occurrence. We can find actuaries in many sectors of the economy, such as finance, insurance, or investment. In these areas, the actuary performs the task of analyzing the risks inherent to each of these sectors and evaluating the possibilities of their … Read more
Average cost is one of the cost types used in economic terms. Also known as average cost, it is used to calculate the average cost of producing a unit. In addition, the average cost calculation serves the to control the variable and fixed costs associated with production. The calculation of the average cost serves like … Read more
A limited company also known by its abbreviation SA is an organization through which the capital of the company is structured in actions that correspond to its partners. In addition, the shares of a limited company at the same time reveal the level of participation and power of each partner of the entity. The shares … Read more
"At par" is an expression that is used in the relationship between the nominal value and the effective value of a financial security. Thus, to understand this concept the stock exchange, you have to take into account what each one means: The nominal value: when the company issues a series of financial titles, the value … Read more
Every closing of the accounting year, companies must correctly attribute those income, expenses, assets and liabilities that correspond to the year. Getting this done through the appropriate measures is what is called an accounting adjustment. This economic term It is essential for the management of the accounting of any company. How is the accounting adjustment … Read more
The assembly line, or production line, forms the basis of the chain production system. It is a system in which the production process tries to optimize costs, minimizing wasted time and promoting maximum worker specialization and the division of labor. Thus, each worker on the assembly line performs a specific operation on the product in … Read more
The concept of accounting books refers to the documents or files where the financial information of the company is collected, including the operations carried out during a specified period of time and which must be legalized periodically. These are the reports obtained from the accounting that contribute to the extraction of both economic and financial … Read more
Non-current assets or fixed assets is a group belonging to all companies, and which remains in it for more than one year. It is a part of the asset and appears within the situation balance of a company. Non-current assets are a special part of the business. They are durable and not very liquid, since … Read more
The accounting entry is made up of all the annotations, also called accounting notes, existing in the Daily Book of Accounting of a company. Each of these notes is made with the aim of reflecting each economic movement of a society, related to its business activity. Each of these entries that are recorded in the … Read more
