Cash flow: Know what it is, what it is for and how to do it
What is cash flow? Cash flow is a financial control where all the cash inflows and outflows of the company are recorded during a specific time. The importance of cash flow comes from your careful observation. Therefore, the manager can predict surpluses or shortages...
Value Added Declaration (DVA)
The Value Added Declaration (DVA) is an accounting statement that aims to show the wealth generated by the company over a period of time and how it was distributed among the various sectors involved in the process. The concept of wealth that is at the base of DVA corresponds to the difference in...
What is a social balance? Social balance is a statement that companies make about their indicators of social, environmental and economic responsibilities. The purpose of this document is to demonstrate to the general public how much the organization contributes to the society around it. ...
Direct and indirect costs
What is a direct cost? Direct cost gets its name because it is directly related to the main business process. These costs are easily identified in products or services, for example, by the price that a merchant buys a certain product to put it up for sale. Other examples of direct costs to...
What is depreciation?
Depreciation is the loss of value of an asset due to its use, natural wear and tear or obsolescence. In corporate accounting, this depreciation is recorded as a percentage of the asset's book value that is discounted over time, according to its expected useful life. Depreciation is applied ...
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