What is the law of supply and demand?

The definition of the law of supply and demand is the relationship between the demand for a product in the market and the quantity supplied of said product with its corresponding price. For the concept of the law of supply and demand to be fulfilled as such, it is essential that market conditions are totally … Read more

What is LIFO?

All companies must carry the accounting of their products. And therefore also the accounting of your stocks. In this sense, the decision on which criterion is the most convenient to value stocks in the case of a specific company is essential. The reason is that accounting is governed, among others, by the uniformity principleTherefore, the … Read more

What is a loan?

A loan is a type of credit acquired by an individual or company. When a company or the State itself has high needs for finance or liquidity, the necessary amount is divided by issuing a series of securities or loans. They are known as loans. All loans issued for financing have the same configuration, value … Read more

What is a tenant?

The lessee is the natural or legal person who exercises their right to use a asset which is owned by a lessor and therefore it is not yours. It is the person who rents an asset for a specified period of time in exchange for paying a price thus. Rights and obligations of the lessee … Read more

What is a limited liability company?

A limited liability company, also known by its abbreviation SL, is an organization in which its capital is divided through shares that can be social, accumulative or indivisible. One of the advantages of a limited liability company is that it offers extensive protection to its owners. One of the differences between the limited liability company … Read more

What is the ledger?

The concept of general ledger refers to the record that gathers the accounting data that is part of the Diary book. Thus, between the ledger and the journal, the balance and status of the accounts are recorded. The functionality of the ledger is to keep track of income and expenses or losses that a company … Read more

What is a limited partnership?

The limited partnership or limited partnership is a type of commercial society in which the partners are participants in the management of the company itself, responding unlimitedly with their assets, while there are other partners who do not participate in the management and respond in a limited way. This type of partnership, also known for … Read more

What is a law?

The word law has its origin in the Latin wordleg of the law;which etymologically means rule, the Latin root leg it is used to define the act of choosing or deciding. Hence, in its first uses the meaning of the word law was defined, as that of a norm established by the convention. Currently we … Read more

What is the liability?

The concept of liability refers to the set of debts that a has. Thus, the liability is collected in the situation balance of any entity and therefore is the result of those obligations of the company that have been the result of its financial activity. In these cases, the accounting liability refers to the financing … Read more

What is operating leverage?

The meaning of operating leverage is the accounting term that aims to increase the profitability modifying the balance between variable costs and fixed costs. It can be considered as the impact that these have on the general costs of the company, referring to the relationship between sales and its profits before taxes and interest. Another … Read more