¿Credits?

The credit is a loan of money to a person or entity, which

undertakes to repay it in a single payment or gradually (over time,
through a payment of fees). An interest is usually agreed that
compensates the credit giver for the time that money will not be
available for use for other purposes.
¿epreciation?
   Depreciation is the systematic distribution of the depreciable
amount of a fixed asset throughout its estimated useful life. With
depreciation, what we really do is accumulate an amount, collected
in each period, continuously over time. The objective of carrying
out this depreciation of a fixed asset is to have the resources
necessary for the replacement of the assets at the time they cease
to be useful. In this way, the operational and productive capacity of
the company is maintained.
¿Financial state?
The financial statements are the documents that the company must
prepare at the end of the accounting year, in order to know the
financial situation and the economic results obtained in the
activities of your company over a period
• The balance sheet
• The income statement
• The manufacturing cost statement
Social capital?
The share capital is an element that we can locate in the accounting
balance of a company, within the own funds or net worth. Its main
function is to act as a guarantee on the part of the company against
third parties, that is, a kind of "mattress" of security. In social
capital, it includes the contributions that the partners of the
company give and for which they obtain a part of their ownership.
These types of operations are carried out at the time of creation of
the company, and periodically through capital increases.
Subscribed capital?
It is the one that determines the responsibility of the shareholders
and consists of the part that each shareholder is obliged to pay in
the constitution or in the capital increases, according to what is
established in the law of companies, its regulations and the statute
of the company .
However, although a part of the subscribed capital is not paid and
therefore is not adding up to the total social assets for the purpose
of being able to determine the intrinsic accounting value of the
respective shares that are subscribed and in circulation.
Bill to pay?
by a company within its fiscal year, it must be canceled to its
creditor in the agreed time, an account payable originates when
inventories, goods, services received, expenses incurred or
acquisition of assets are acquired, which are not immediately
canceled . It is common for companies to have accounts payable
within their accounting, since much of the resources they need for
normal operation are canceled by mutual agreement fees. There
are two ways to register accounts payable, if it is a debt whose
maturity is less than 12 months, it will be registered within the
account plan as a short-term account payable, if it is a debt whose
term to be canceled is more than one year, will be registered as a
long-term account payable. It is important that the company keeps
an adequate control of its account payable, to avoid non-payment,
which can generate default interests or compensation.
• Payment files must be prepared for each supplier, which contains
the invoices, receipt report and payments made.
• It is necessary to keep the account payable up to date in the
ledger.
• Monthly, it must be verified that the balances according to the
ledger, coincide with the balances of the corresponding control
accounts.
• Verify payment terms to avoid past due debts and consequently
late payment of interest.
Document?
A document is the testimony, material of a fact or act carried out in
the exercise of its functions by institutions or individuals, legal,
public or private, registered in an information unit on any type of
support such as: paper, tapes, magnetic disks , movie, photographs,
etc. It is the testimony of a human activity fixed on a support.
Inventory?

Orderly relationship of goods and stocks of an entity or company, at

a specific date. Accounting is a current asset account that
represents the value of existing merchandise in a warehouse. In
general terms, it is the relation or list of material goods and rights
belonging to a person or community, made with order and clarity.
In accounting, the inventory is a detailed list of the material
inventories included in the asset, which must show the number of
units in existence, the description of the items, the unit prices, the
amount of each line, the partial sums by groups and classifications
and total inventory.
Entry?
• Know the demand: through an inventory, you can analyze on
what dates and times you have more or less sales.
• Obtain discounts on the purchase: as you get to know the flow of
your merchandise you can make wholesale purchases with more
accuracy, and in all the stores for the purchase of large quantities
they make discounts than for carrying units.
• Quick decision making: by having control over your inventory you
can make more precise decisions such as making sales, discounts or
promotions.
Receivable?
"Accounts receivable represent enforceable rights arising from
sales, services rendered, loan granting or any other similar
concept." The above general concept includes documents
receivable from clients that represent enforceable rights, which
have been documented with bills of exchange or promissory notes.
Accounts receivable are classified according to their origin, for
example: in charge of customers, in charge of affiliated companies,
employees, etc., separating those that come from sales and
services from those that have another origin.
The rights required by the above concepts that are part of the
working capital, are those that have short-term maturities and,
therefore, their collection is within a year or within the short-term
financial cycle of the entity , if this is greater than one year.
Accounts receivable represent applications of company resources
that will be converted into cash to end the short-term financial
cycle
Accounting?
It is a key tool to know in what situation and conditions a company
is and, with this documentation, to establish the necessary
strategies in order to improve its economic performance. For
example, if we buy wood to make chairs we will have to count that
purchase to know how much we have, how much it has cost us,
who the seller is, on what date we buy it, etc. All of that and more
is responsible for accounting.
Accounting is a resource available to manage the expenses and
income of a company. Any company in the development of its
activity carries out purchase, sale, financing operations as a result
of these activities, its assets vary and obtain a profit or loss. All
companies are aware that they must properly manage accounting
parameters. This concept involves both the so-called small and
medium enterprises as well as the large multinationals. In the same
way, it is due both to financial reasons of terms of ensuring
adequate profitability, and to fiscal provisions, due to the pressure
of federal, provincial and local tax authorities on each corporate
formation
Financial Accounting is a branch of the area of accounting that
deals with systematizing information on the activities and economic
situation of a company at a time in time and throughout its
development.
Financial Accounting?
Financial Accounting allows to have a historical and quantifiable
record of the activities carried out by a company and of the
economic events that affect it.
Financial Accounting has two main objectives, depending on the
user of the information: Internal: provides valuable information
about the financial position of the company, which allows
evaluating the results of decisions that have been taken in the past,
introducing changes and / or propose new strategies and plan for
the future.
External: Report on the financial situation of a company which
makes it easier to make comparisons and attract potential
investors. Financial accounting also facilitates control and
supervision by the relevant authorities
General Accounting?
Accounting is a procedure in which all transactions of a company
are recorded. This is an indispensable tool for the good
administration of a company. In this work we will study accounting
from a managerial point of view in order to realize how important
accounting is for the administration of a company.
Here we will detail how, through accounting, management can
identify, correct and prevent errors and frauds that companies may
suffer and that can impede their proper functioning and growth.
Double split accounting?
The double entry system is the method or system of recording the
operations most used in accounting. This resembles a balance,
since they have to be in equal conditions to be in balance. Here you
have to see two concepts: he must and the credit. He must debit,
charge or owe. To have is to credit, to pay. When examining any
commercial operation and remembering the handling of the
accounts, it will be discovered that in each of them, at least two
accounts are managed: one that is debited and another that is
credited. Each operation is recorded twice: once in it must and
once in the credit. The entry that involves the two items (must and
have) is called the accounting entry.
Debit?
The debit refers to the money that is owned by the customer and
has it in a bank checking account. A debit is defined in the “Debit”
and is an account of the accounting asset that is accompanied by a
credit recognized in the “Credit” reflected as a liability or equity.
The debit refers to the debt, in accounting it is understood as that
numerical annotation that is made in the account, in the debit, and
represents the goods or rights that a company or person possesses.
You can increase the balance of a liability or decrease the balance
of an asset. It also refers to those cards issued by a bank for
transactions such as collections and payments. It is based on a
savings account or a checking account, it allows the realization of
active financial operations (increases the balance), liabilities
(decreases the balance) or neutral (neither increases nor decreases
them). It is a system of transporting highly valued money in the
world to not carry cash with us. It is today one of the most
widespread modalities of payments for services and goods in the
world.
Intangible asset?
The intangible asset is that asset characterized by its immaterial
nature, it cannot be measured in a physical way since it lacks such
essence, however, it has the capacity to generate economic
benefits for the company which can be controlled by itself.
Intangible assets can be owned by the company or come from third
parties through licenses and permits, they have a long useful life
and are intended to increase the profits of the company without
being destined for sale.
When keeping the accounting of intangible assets during the
economic activity of the company, it is necessary to take into
account the following: That their ability to provide economic
benefits to the company can be demonstrated.
Your costs can be determined on a reliable basis. Intangible assets
must be reviewed at each closing of the fiscal year, to analyze their
evolution and the progress of their useful life.
Deposit?
Balances due to depositors of a bank; funds credited to depositors'
accounts. Deposits can be broadly classified into general, specific
and special. General deposits are made up of money or checks and
bank credits. As long as the deposits are of this nature, the
relationship between the bank and the depositor is that of the
debtor and creditor. The bank becomes the owner of the deposit.
The depositor has a credit against the bank for the amount
deposited. Specific deposits are those made with a defined purpose
and for which the bank acts as a depositary, for example, money
left to cover a promissory note, or to acquire securities. Special
deposits consist of properties, excluding money, for example,
bonds, stocks, promissory notes, life insurance policies and other
valuable documents, jewelry, silverware, dishes, etc., which are
delivered at the time of establishing the relationship .
Passive in a short time?
Those of short term are those that have been acquired with the
purpose of being liquidated in a term of one year or less and for
Financial purposes of Business management, these should be used
only to cover needs or deficiencies in the cash flow in the
operation. More explicitly, when a short-term credit is requested as
a general rule, it should be used to pay commitments that are
directly related to the operation of the business, these may be
payroll payments, purchase of supplies for production, and
payment of Any expenses necessary to continue operating the
Business. Care must be taken since having the need to ask for a
short-term loan can mean that the economic cycle of our business
is not going around fast enough, or what is the same, money is
entering the business later in time. When we need it, this may be
due to several factors, including the following: Accounts receivable
are being delayed and are not paid on time.
The average payment term to Suppliers is less than the average
credit days we have granted to our Clients.
For this purpose, the deficiency must be determined to
immediately apply corrective measures so as not to continue
suffering from lack of cash flow.
Long-term liabilities?
are those credits that are acquired to be liquidated for a term
greater than one year.
This type of Liabilities or debt acquisition, must be applied
specifically to the growth of the business, that is, the resources that
come from this source of financing must be used for the acquisition
of infrastructure of the Business, for example, purchase of
machinery and equipment, opening of branches and everything
that may represent a growth for the Business.
I'll pay?
The promissory note is a title of credit in which the issuer agrees to
pay an economic sum to a beneficiary before a certain date. This
private document can be used as a public instrument and is called a
credit title because the holder may demand that payment be made
within the agreed terms. The legal requirements of promissory
notes can be found in the Foreign Exchange Law and the check.
Two subjects are involved in the realization of the promissory note:
The issuer: Subject that undertakes to pay a certain amount.
The beneficiary: Subject to whose order the amount agreed on the
promissory note must be paid.
Shareholders?
A shareholder is the natural or legal person that owns one or more
shares of a company or company. Owning the shares of a company
grants the status of owner and partner. The responsibility and
decision-making power in the company will be given in proportion
to the quantity and type of actions of which it is the owner. Being a
shareholder implies having a set of rights related to the company.
These rights can be economic or management the main economic
rights we have to receive dividends, freely sell the shares or receive
part of the value of the company if it is sold. Management rights
are related to decision making, voting rights and access to company
information to know everything that happens in it.
The rights held by shareholders will be defined according to the
type of action they hold.
Minor box?
The minor fund is a fund that is created in companies to handle
small disbursements, and is assigned to a person as responsible for
its management.
There are many small payments, which to manage them by banks
becomes complex and can hinder the agile development of certain
activities, so the solution is the constitution of a better cash fund
that handles these types of payments, in this way , those purchases
or minor payments, which are not representative, are managed by
this fund.
Accounting assistant?
It is that employee who executes the accounting entries of the
company and performs the analyzes, bank reconciliations,
projection of financial statements and accounting and financial
reports. As well as the preparation and projection of the tax
declarations in the different reports destined to the state entities of
c Given the nature of the position it occupies, it must control and
be aware of the details that correspond to the scope of its
competence.
Social capital?
The share capital is an element that we can locate in the accounting
balance of a company, within the own funds or net worth. Its main
function is to act as a guarantee on the part of the company against
third parties, that is, a kind of "mattress" of security. In social
capital, it includes the contributions that the partners of the
company give and for which they obtain a part of their ownership.
These types of operations are carried out at the time of creation of
the company, and periodically through capital increases.
TAX
It is a kind of tax (generally pecuniary obligations in favor of the tax
creditor) governed by public law, which is characterized by not
requiring a direct or determined consideration by the tax
administration (tax creditor). The taxes, in the majority of
legislations arise exclusively by the “tributary power of the State”,
mainly with the objective of financing their expenses. Its guiding
principle, called “Contributory Capacity”, suggests that those who
have more should contribute more to state financing, to consecrate
the constitutional principle of equity and the social principle of
freedom
PAYROLL
It is the sum of the financial records of employee salaries, including
salaries, bonuses and deductions. In accounting, payroll refers to
the amount paid to employees for the services they provided for a
certain period of time. The payroll has an important role in a
society for several reasons. From an accounting point of view,
payroll is crucial because payroll taxes and the payroll itself, greatly
affect the net income of most companies, and are subject to laws
and regulations (for example, payroll in the US U.S. is subject to
federal and state regulations). Starting from business ethics, it is
essential that employees respond with questions to payroll errors
and irregularities. Good employee morale requires a payroll to be
paid on time and accurately. The main mission of the department
that deals with payroll settlement is to ensure that all employees
are paid on time and in a timely manner, with the correct
withholdings and deductions, ensuring that withholdings and
deductions are remitted in a timely manner. This includes timely
payment of salaries, withholding taxes, and deductions.
BUDGET
The calculation, exposure, planning and anticipated formulation of
the expenses and income of an economic activity is called a budget.
It is an action plan aimed at fulfilling a planned objective, expressed
in financial terms, which must be fulfilled at a certain time, usually
annually and under certain conditions. This concept applies to each
and every one of the responsibility centers of the organization. The
budget is the instrument of annual development of companies or
institutions whose plans and programs are formulated for a period
of one year. Preparing a budget allows companies, authorities,
private entities or families to set priorities and evaluate the
achievement of their objectives. To achieve these ends, it may be
necessary to incur a deficit (that the expenses exceed the income)
or, on the contrary, it may be possible to save, in which case the
budget will present a surplus (the income exceeds the expenses).
HERITAGE:
In the economic field, we usually define heritage as a set of assets,
rights and obligations that a person, group of people or company
has and which it uses to achieve its objectives. In that sense, they
can be understood as their resources and their use. If we focus on a
more linked approach to accounting, we would define equity as a
sum of an asset and a liability that are closely linked and related, so
that the asset encompasses real assets and assets while the liability
refers to obligations and debts that the person or company has.
AUDIT:
The purpose of an audit is to certify the reliability of the Financial
Statements for users, for which the auditor has to design and apply
procedures that help him obtain the appropriate information and
then generate reasonable conclusions and issue an independent
opinion on the presentation of the figures that appear in these
states.
AUDITOR:
Natural person who is authorized by the Institute of Accounting
and Audit of Accounts (ICAC) to perform audits of accounts, and
must be registered in turn in the Official Register of Account
Auditors (ROAC). It may also be authorized by the competent
authorities of a Member State of the European Union or of a third
country. An auditor is the person who conducts an audit. You must
be trained with the necessary knowledge to express a professional
opinion on the faithful image of the company in accordance with
generally accepted accounting principles.
PUBLIC COMPANY
is one that is owned by the government, be it national, municipal
or any other administrative stratum, either in a total or partial way.
However, the European Union defines a public company as any
company in which the public authorities can directly or indirectly
exercise a dominant influence due to ownership, financial
participation or the rules that govern them.
PRIVATE ENTERPRISE:
It is a type of commercial enterprise that is owned by private
investors, non-governmental, shareholders or owners, and is in
contrast to state institutions, such as public companies and
government agencies. Private companies constitute the private
sector of the economy. An economic system that: contains a large
private sector where private management companies are the
backbone of the economy, and the trade surplus is controlled by
the owners, which is known as capitalism. This contrasts with
socialism, where the industry is owned by the State or by the entire
community in common. The act of taking assets in the private
sector is known as privatization. The objective of the private
company differs from other institutions, the main difference is that
the private company exists only to generate profits for the owners
or shareholders. To enter that company you need to be a partner or
worker. Its owners can be legal persons and also natural persons.
The opposite is an open capital company. The private company is
not made up of the government, but of its peers the retailers.
PUBLIC COMPANY:
is one that is owned by the government, be it national, municipal or
any other administrative stratum, either in a total or partial way.
However, the European Union defines a public company as any
company in which the public authorities can exercise, directly or
indirectly, a dominant influence due to ownership, financial
participation or the rules that govern them.
ACCOUNT CATALOG:
It is the document that is part of the accounting and that contains a
systematic ordered analytical list of the accounts that comprise it.
Also the catalog of accounts is considered as an important tool for
capturing accounting records to such an extent that when analyzing
it, the user can get an idea of the company's business.
ADJUSTMENT: This is a correction made in accounting to allocate
the corresponding income, expenses, liabilities and assets to their
respective years. At the close of the accounting year (usually
December 31), it is normal for a company to have mismatches in its
accounting. This may be due to income and expenses accounted for
that belong to other years, or to income and expenses not yet
accounted for in the current year. For the accounting result of the
year to reflect the reality of the company, it is therefore
appropriate to make the corresponding adjustments on the side of
income and expenses and on the side of assets and liabilities.
DEBIT NOTE
It is a receipt that a company sends to its client, in which it is
notified that it has charged or debited a certain sum or value in its
account, for the concept indicated in the same note. This document
increases the value of the debt or account balance, whether due to
an error in billing, interest for late payment, or any other
circumstance that means an increase in the balance of an account.
CONTINGENT LIABILITIES:
Within the estimated liabilities there is a group called contingent
liabilities, which represent the situations that, by representing a
possibility of occurrence, create a financial uncertainty in the
company. In the commercial and civil relations that a company
usually has with third parties, controversial, litigious facts may
arise, which can lead to the company having to assume a
responsibility that may involve a high financial cost.

CORPORATIONS:
The constitution of a public limited company must be made by
public deed following the provisions of the commercial code. The
corporation is a form of capitalist type organization widely used
among large companies. All capital is divided into shares, which
represent the participation of each partner in the capital of the
company. One of the characteristics of the corporation is that the
responsibility of each partner is proportional to the capital there is.
Therefore, participate and have a fairly high level of financial
security. In addition, unlike a personalist society, the S.A. As a
capitalist society it is a personal organic structure. This means that
you can act as a legal entity.
GENERAL JOURNAL:
General Journal is one of the most basic used in day-to-day
accounting. In this, all the economic operations that are carried out
in a business are registered in a chronological way for its
subsequent transfer to the major. When registering an accounting
entry in the daily book it is necessary to understand what we are
going to register and always remember that the sum of all debits
must be equal to the sum of all credits to comply with the principle
of double entry. This means that every time we give a debit to one
account, we must also give a credit for the same value to the other
affected account.
UNIQUE OWNER COMPANY:
This is a business that is owned by a single owner. It is the most
common form is usually small businesses that have a capital of less
than 50 employees and represent 80% of the economy
AUXILIARY BOOK: Auxiliary books are books where the values and
the information recorded in the main books are recorded in an
analytical and detailed manner. There is an obligation to carry it as
this should serve as support to know the individual transactions. Its
unlimited number according to the needs according to its size and
the work that has to be done in a way that allows the complete
understanding of the accounting books
BOOK BIGGER: It is the summary book of the operations carried out
in a month, which allows to elaborate the general purpose financial
statements. The information is obtained at the level of major
accounts and produces a synthesis of the debit and credit
movements that affected each of the major accounts, coded as said
with four digits. The Major and Balances contains all the major
accounts of the PUC used by the economic entity. The analytical
information of the accounts is obtained from the auxiliary books.
ACCOUNTING PRINCIPLE: Generally Accepted Accounting Principles
gave rise to International Financial Reporting Standards and serve
as an ethical and professional basis for accountants and
entrepreneurs. In this article we tell you what are the qualities of
these PGA and we tell you what each Generally Accepted
Accounting Principle consists of
COST OF SALE
The cost of sales includes the amount of expenditures and charges
associated with the acquisition or production of goods and the
provision of services sold by the public accounting entity during the
accounting period. Operating costs constitute the recognized values
as a result of the development of the basic or main operation of the
public accounting entity in the administration of social security, the
development of financial and insurance activities and the
exploitation of games of chance and chance; operations that due to
their characteristics are not recognized cumulatively in production
costs.
UTILITY
In economics, utility is the concept of remuneration of the
entrepreneur for the acceptance of risks and administrative
management. In commercial operations, profit is the profit from
the manufacturing, organization and sale processes, after covering
all expenses. Since profit is normally added to net assets, this can
be measured by the increase in net assets over the previous
accounting period. Therefore, the amount of a company's profits
can be determined not only by the Income and Loss Statement, but
also by a comparison of the surplus earned or net assets in the
balance sheet that, on the other hand, is the surplus of profits after
the payment of dividends and any other allocations, and does not
disclose the details of the sources of income and expenses, as it
appears in the Statement of Profit and Loss. In speculative
operations, profit represents the excess of the net sales price over
the cost (including all expenses) of the securities or products
traded.
AVAL:
The guarantee is the bail contract in the Exchange Law. Emerged in
London for the uses of the bill of exchange in this way, it is a
unilateral commitment of payment, generally joint and several, in
favor of a third party (beneficiary), who will receive the benefit in
case of not complying with the guarantee (debtor of the
beneficiary) . The guarantor bound by the guarantee is called the
guarantor. The legal rules of the bond are applied additionally to
the guarantee. If not, this supplementary application does not fit
when the guarantor is obliged to pay without any opposition
reservation, in cases where it is said that he provides the guarantee
at first demand, or at the first requirement.
COUDEUDOR: A co-debtor is another person who also assumes
responsibility for paying the loan. Often, a co-debtor is a family
member. The co-debtor is obliged to pay all late payments and
even the total loan amount, if the borrower does not pay. The co-
debtor's credit can also be affected, if the borrower is late in
payments. Having a co-debtor on your loan gives your lender the
additional guarantee that the loan will be paid.
FIADOR:
Person who undertakes to guarantee the execution of a contract by
one of the parties for the benefit of the other. When the guarantor
lends himself to execution in case the principal debtor does not
fulfill his commitment, it is called the personal guarantor. When the
guarantor, instead of committing himself to personal execution,
offers as collateral a mortgage on a property of his belonging, it is
called a royal guarantor.
INTEREST: finance, is an index used to measure the profitability of
savings and investments as well as the cost of a loan. If, for
example, one speaks of a bank loan as a mortgage loan for the
purchase of a home. It is expressed as a percentage referred to the
total investment or credit.
CUSTOMS:
Customs is a government public office, apart from being a tax
constitution, located at strategic points. These strategic points are,
in general, coasts, borders, international merchandise transport
terminals such as airports or railway terminals. This office is in
charge of controlling foreign trade operations, with the objective of
registering the international traffic of goods that are imported and
exported from a foreign country and collect the taxes established
by law. It could be said that customs were created to collect this
tax, and on the other hand regulate goods that by their nature can
affect national production, public health, peace or security of a
nation.
Overdrafts:
it is a situation in which a checking account, savings account or
savings book, has a balance less than zero, negative. The customer
has spent more money than he had in that account and owes that
money to the bank. This situation is also usually called overdraft or
red numbers, because of the color in which negative balances are
conventionally printed. The bank provides a loan, even a few days,
to solve the overdraft. This situation is usually quite expensive in
relation to the amount and duration of the debt with the bank.
IMPORT TARIFF:
It is the tax that applies to all goods that are subject to import. The
most frequent is the tax charged on imports, while export tariffs are
less common; There may also be transit fees that levy products that
enter a country to another. When a ship arrives at a customs port, a
customs officer inspects the contents of the cargo and applies a tax
according to the rate stipulated for the type of product. Because
the goods cannot be nationalized (incorporated into the economy
of the receiving territory) until the tax is paid, it is one of the easiest
taxes to collect, and the cost of its collection is low. Smuggling is
the entry, exit and clandestine sale of merchandise without
satisfying the corresponding tariffs.
NEGOTIATED REMITTANCES:
This term has two applications. In general, the term applies to any
form of payment in cash, or its equivalent, in settlement of a debt,
which is sent from one place to another. In banking practice the
term is often used to indicate the sending of deposits for your
credit (checks, cash, money orders, expired coupons, etc.) by
customers, through the mail, although more strictly limited to a
Bank check in payment of the product of the checks that have
previously been sent to you for collection.
REMITTANCES FOR COLLECTION:
A bank remittance is a document that groups several receipts and is
used to settle several collections at once. In this case, with a
collection remittance we would give authorization to our bank to
formalize, for example, the collection of several customers for the
services provided. In other words, we are giving the order to our
bank to proceed to execute the collections. We can specify the
amounts to be charged to each one, the date on which the
remittance should be charged, etc.
DEFERRED EXPENSES:
Deferred expenses, despite being classified as an asset, are nothing
other than expenses already paid but not yet used, whose purpose
is not to affect the financial information of the company in the
periods in which even these expenses have not been used. Due to
different circumstances, the company decides to buy or pay some
expenses that it will not use immediately, but will use them or
consume them over time and while this happens, they remain as an
asset.
OPERATIONAL LEVELING: It is an accounting concept that seeks to
increase profitability by modifying the balance between variable
costs and fixed costs. It can be defined as the impact they have on
the overall costs of the company. It refers to the relationship that
exists between sales and their profits before interest and taxes. It
also defines the ability of companies to use fixed operating costs to
maximize the effects of changes in sales on profits, also before
interest and taxes. Changes in fixed operating costs affect operating
leverage, as this constitutes an amplifier of both losses and gains.
Thus, the greater the degree of operating leverage, the greater the
risk, since a larger marginal contribution is required to cover fixed
costs.
BALANCE OF PAYMENTS:
It is a record of all monetary transactions produced between a
country and the rest of the world in a given period. These
transactions may include payments for the country's exports and
imports of goods, services, financial capital and financial transfers.
The balance of payments summarizes international transactions for
a specific period, usually one year, and is prepared in a single
currency, typically the domestic currency of the country concerned.
Sources of funds for a country, such as exports or income from
loans and investments, are recorded in positive data. The use of
funds, such as imports or investment in foreign countries, is
recorded as negative data.
BANK OF THE REPUBLIC: The Bank of the Republic is a State body
of a unique nature, with administrative, patrimonial and technical
autonomy, which exercises the functions of central banking.
According to the Constitution, the main objective of the monetary
policy is to preserve the purchasing power of the currency, in
coordination with the general economic policy, understood as that
which seeks to stabilize the product and employment at its long-
term sustainable levels. In the exercise of this function, it adopts
the policy measures it deems necessary to regulate the liquidity of
the economy and facilitate the normal functioning of the payment
system, ensuring the stability of the value of the currency. The
special functions assigned to the Bank include regulating the
currency, international changes and credit, issuing the Colombian
legal currency, managing international reserves, being a lender and
banker of credit institutions and serving as a government fiscal
agent. As part of its functions, the Bank also contributes to the
generation of knowledge and the cultural activity of the country.
COMMISSION:
It is the amount charged for conducting commercial transactions
that correspond to a percentage of the amount of the operation.
The objective of the commission is to encourage the effort of the
seller who will obtain greater income the greater the amount of
sales generated. The commission usually consists of a fixed
percentage applied to the sale price but a different scale can also
be established by virtue of the product line, distribution channel,
customer category, etc. The reason is that companies usually
remunerate better sales with greater profitability.

INFLATION:
It is the generalized and sustained increase in the level of prices in
the market during a period of time, when the general level of prices
increases. That is, inflation reflects the decrease in the purchasing
power of the currency: a loss of the real value of the internal means
of exchange and unit of measure of an economy. A frequent
measure of inflation is the price index, which corresponds to the
annualized percentage of the general variation in prices over time
(the most common is the consumer price index).
RETIREMENT:
Retirement is the administrative act by which an active worker,
whether self-employed or employed, goes into a passive or inactive
work situation, after reaching the maximum age, or due to serious
chronic illness or disability. He then obtains a monetary benefit for
the rest of his life. The labor legislation of each country stipulates
different conditions in this regard.
LEASING:
It is a contract whereby the lessor transfers the right to use a good
to a lessee, in exchange for the payment of rental income for a
certain period, at the end of which the lessee has the option to buy
the leased good by paying a certain price, return it or renew the
contract.
FIGHT: Refers to the profit, economic benefit, utility, income, gain
or surplus obtained for the controller of the production or
distribution of a particular product or service. This term is used in
economics, accounting and jurisprudence, being used to describe
the results or purposes (profit motive) that any person or body
participating in a market may have. Profit is also one of the main
rules of capitalism which boosts the private interest of people,
small businesses, large companies and multinationals to obtain
profits from their activity by making use of the right to private
property, their capital and access to concessions. (exploitation
rights, contracts, services, etc.), the previous ones obtained and
guaranteed by the markets and the States.
BANKRUPTCY
It is the situation in which a trader ceases his activity by not having
liquidity to pay his debts. It is a legally regulated situation in which
a person or company cannot cope with the payments that it must
make to its creditors, since these are greater than the economic
resources it has. That person who declares bankruptcy is called
"broken" or "failed." When a bankruptcy is legally declared, the
company goes to bankruptcy proceedings (or bankruptcy
proceedings) where it is examined whether the assets of the
bankrupt can be liquidated with the intention of meeting its
obligations.
CREDIT CARD: The credit card is a material identification
instrument, which can be a plastic card with a magnetic stripe, a
microchip and an embossed number. It is issued by a bank or
financial entity that authorizes the person in whose favor it is
issued to use it as a means of payment in businesses attached to
the system, by signing and displaying the card. It is another
modality of financing; therefore, the user must assume the
obligation to return the amount provided and to pay interest, bank
fees and expenses