Difference between accounting and financial amortization

In economics there are two meanings of the word amortization, as used from an economic-accounting point of view or from a financial point of view. In other words, one serves to amortize assets and another to amortize liabilities. The economic-accounting amortization serves to amortize assets. Meanwhile, financial amortization is used to amortize liabilities. In the following, … Read more

Dictatorship of the proletariat

The dictatorship of the proletariat, according to Marxist and communist theories, is that situation in which the salaried working class stands as the center of the political and economic power of a state vis-à-vis the bourgeois social class. The dictatorship of the proletariat is one of the most important communist postulates . It supposes the final state or the maximum … Read more

Natural day

A calendar day is any day of the year, including holidays and weekends. The concept of a natural day is widely used in law. Knowing it and differentiating it from others as the concept of business day or working day is essential to carry out the appropriate procedures and avoid situations that nobody wants. It could happen, for example, … Read more

Debtor

A debtor is a person, physical or legal, who owes money to another person, known as a  creditor. The debtor is obliged to make the payment to the creditor on a previously agreed date. If the debtor does not comply with the agreement, that is, with his obligation, the creditor can demand a real asset from the … Read more

Sovereign debt

Sovereign debt is the debt that a country maintains against its creditors . It is, therefore,  the public debt that the State contracts for the purpose of financing. This process is done through the issuance of fixed income securities in the financial markets. The public debt is the obligation that the State has for the total accumulated loans it has received or for which it is responsible, … Read more

Private debt

Private debt is considered to be the debt of any person, natural or legal that is not a Public Administration.  That is, private debt is that debt is generated when a person asks for a loan or credit , when a company issues bonds , promissory notes , etc. All of that is private debt. The private debt of a country is … Read more