Notes, summaries, assignments, exams, and exercises for Economics for University

Core Accounting Concepts

Accounting: A Control System

Accounting is an economic-financial information control system with a great capacity for synthesis reports, showing very low [detail/complexity - *The original sentence was incomplete, assuming context implies low complexity in the final report*].

Cost Accounting Focus

Cost accounting is primarily addressed to company managers or directors.

Supplier Account Charge

A charge on the account of a supplier means that the debt owed by the company to that supplier decreases.

The Ledger Function

The ledger displays transactions that affect each particular asset item, allowing observation of its amount at any time.

Accrual Basis Application

When applying accrual, it is stated: "We record on an accrual basis....

Ratings Assigned and Debt Classification

The 'ratings' assigned As we can see, the change in rating from BA1 to Baa3 is a substantial change in the debt rating of OHL. This resembles what happens in speculative investment grade classifications (sometimes called "junk bonds" in such contexts), for which the debt security becomes classified by Moody's as speculative and high risk.

It is clear that in the previous section the firm appeared to have more debt when viewed under the Modigliani–Miller with taxes valuation model, because tax deductibility of interest is included there; however, that effect does not fully capture the additional risk posed by excessive leverage. As we have seen in section 3 of the module, considering the costs of financial...

Capital Structure Theories: Modigliani-Miller, Pecking Order

This document presents corrected and polished statements about major capital structure theories, including Modigliani–Miller, the trade-off theory, agency and signaling theories, the pecking order, the Gordon growth model, and implications for SMEs. Each numbered statement below preserves the original content while improving spelling, grammar, capitalization, and clarity.

1. Modigliani-Miller: Irrelevance Thesis

False. According to the original Modigliani and Miller (M&M) irrelevance proposition (without taxes), the value of the firm depends only on its investment policy — specifically the future cash flows generated by its assets — and does not depend on the dividend policy...

1. Organizational Change: Amending the Status Quo

The role of management is to amend the status quo (the quiescent state) of the organization. Management must increase the driving forces and limit or reduce the restraining forces to combine these two forces to change the status quo of the people.

In the organization, the change process must follow three essential steps:

1. The unfreezing of the status quo.
2. The shift towards a new target (movement).
3. The refreezing of the new change.

2. Variables Causing Resistance to Change

Resistance to change manifests through different variables at the individual and organizational levels.

Individual Variables Affecting Change Resistance

Individual variables directly affecting resistance include:

• Habits
• Safety and security

Elasticity Fundamentals

Elasticity measures how the quantity demanded of a good changes in response to a 1% change in its price. Goods that are not basic necessities and have many substitutes tend to be more elastic. This concept is used to determine pricing strategies and maximize total revenue.

• Goods are more elastic in the long term.
• Elasticity depends on necessity; if the price decreases, the quantity demanded increases.

Inelastic Goods

Inelastic goods are those considered urgent or basic. Even if the price rises, the quantity purchased changes very little.

Types of Elasticity

• Arc Elasticity: Data from reality, measured from one point to another.
• Point Elasticity: The elasticity at a specific point on the curve.

Coefficients of Elasticity

• Elastic:

Business Information Systems & Strategic Management

Hotel Industry Entities & Locations

Pegasus Agencies TQ3, Spain, Barcelona, The English Court, Iberia, Mars, Weaver, Vincit. Pegasus Hotel: Ritz Madrid, Husa Bay of Vigo, Melia Las Palmas, Marriott Mallorca, City Silken Victory.

Hotel Management Systems & Services

Internet communication services and information. Savia Intelligence (1994). The DDS (Decision Support System) process involves design and selection. More extended services management systems for hotels include: Pricing, Room Status, Room Access/Utility Control, and Minibar Charge.

Applications of Revenue Management

Revenue Management is typically applied in industries where capacity is perishable and pricing is dynamic:

• The

Dollarization: Causes and Effects

1. Causes: Loss of value of the national currency and its utility as an accumulator of wealth.

In situations of high macroeconomic instability, foreign currency is used as a store of value to avoid the loss of wealth. It serves as a unit of account—especially in the real estate sector—to avoid menu costs, and ultimately as a means of payment, leading to the repudiation of the national currency and the popularization of foreign currency.

Money and Its Functions

Money: Any merchandise or object generally accepted as payment.

• Means of Exchange: An object accepted in exchange for goods and services.
• Unit of Account: A measure agreed upon to express prices.
• Store of Value: A repository of value that can be saved and

Methods of Bank Reconciliation

A. Starting from the Bank Balance to the Company Balance

• Sum: Debits recorded by the company, not credited by the bank.
• Sum: Debits recorded by the bank, not authorized by the company.
• Subtract: Credits recorded by the company, not deducted by the bank.
• Subtract: Credits recorded by the bank, not deducted by the company.

B. Starting from the Company Balance to the Bank Balance

• Sum: Credits recorded by the bank, not debited by the company.
• Sum: Credits recorded by the company, not deducted by the bank.
• Subtract: Debits recorded by the bank, not authorized by the company.
• Subtract: Debits recorded by the company, not credited by the bank.

C. Reaching Real Balances

Based on the Company Balance

• Sum: Credits recorded by the bank,

Heritage and Equity

Social Capital

Social capital represents the portion of assets provided by shareholders. This capital stock can consist of common or preferred shares. In the balance sheet, any unpaid share capital must be subtracted from the total.

Surplus

The term surplus refers to an excess, leftovers, or waste; in general, it is the surplus remaining after satisfying a specific use or need. Surplus is the most appropriate term for earnings, though it is subject to availability. It can originate from:

• Normal operations: Operating surplus.
• Capital gains: Profits on the issuance of shares (capital surplus).
• Donations: Donated surplus.
• Revaluation of assets: Asset revaluation surplus.

Reservations and Retained Earnings

The retained earnings reserve...