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Abiblo Economics - Account

5/17/2020

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​Account
It is a statement of activities over a specified period. 
 
Accountability is an obligation to produce such statement. The directors of companies are accountable to the shareholders. 
 
Account can take various forms. Account may be the statement of the relation between two parties.  For instance, bank account records the borrowing, deposits and withdrawal of the customers. Accounts of the goods and services provided to the customers being kept by the firms. Goods being provided on account are supplied on credit. An account rendered is a demand for payment for services as well as good supplied.
 
Account also means a systematic summary of activities in money terms of a business over a specified period of time usually annually. There are two common statements in such accounts such as the balance sheet and profit and loss account. 
 
A profit and loss account shows the receipt of payments and the profit and loss made during an accounting period.
 
A balance sheet account shows the assets and liabilities of a firm on a specified dates at the start and at the end of an accounting period. 
 
Accountant and are auditors and producers of accounts. They are professionally qualified.
 
The accounts have to be credible to the courts, creditors and tax authorities. Accounts of firms must be certified as accurate by professional auditors.
 
The surveys of the economic activities of a nation are stated on the national income and expenditure accounts. They consists of analysis of the production of goods and services, the expenditures of investors, consumers and the government and distribution of the incomes. Based on the national income accounts related to transactions with the rest of the world, the current account records sales and purchases of goods and services, and property transfers and incomes. The capital account records sale and purchase of assets such as real foreign direct investments, inwards and outwards and financial transactions, sales and purchases of securities abroad and the repayment and making of international loans. 
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​Abiblo Economics – Accommodatory Monetary Policy

5/17/2020

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​Abiblo Economics – Accommodatory Monetary Policy 
Accommodatory Monetary Policy  allows the supply of the money to expand in line with the demand for it. 
 
When the demand for money increases due to sustainable real growth in the economy, accommodatory monetary policy is desirable. In this case, any failure to expand the supply of money may lead to temporary unsustainable surge in real activity, inflation in wages and prices. The acommodatory monetary policy permits these excesses to continue too long. 
 
In scenario where there is obvious excess of demand or high inflation, this will lead to a shift for a more restrictive monetary policy. This may lead to a serious cases of recession. 
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​Abiblo Economics – Accession Criteria

5/17/2020

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​Abiblo Economics – Accession Criteria 
Accession Criteria is a condition that a candidate country need to satisfy in order to join the European Union.
 
The criteria include political and economic criteria and the requirements for institutional and administrative capacity. 
 
The candidate counties based on the 1993 European Council in Copenhagen should have achieved stability of institutions that guaranteeing democracy, respect for and protection of minorities, rule of law, the existence of a functioning market economy and follow to the aims of political, economic and monetary union.
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​Abiblo Economics – Accepting House

5/17/2020

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​Abiblo Economics – Accepting House 
Accepting House is a financial firm which is willing to accept bills of exchange, that guarantee that they will be paid on the due date.
 
The financial reputation of the Accepting House is used to earn a fee for acceptance. The specialized knowledge of financial markets of the Accepting House may help them to avoid taking too many risks of accepting bills where it is going to have honour its guarantee. 
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​Abiblo Economics – Acceptance Region

5/17/2020

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​Abiblo Economics – Acceptance Region 
A set or range of values in statistical inference where the test statistics is likely to fall with a given probability if the null hypothesis is true. 
 
The set of value which is complement of the acceptance region is termed the rejection region
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​Abiblo Finance – Additional Voluntary Contributions

5/16/2020

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​Abiblo Finance – Additional Voluntary Contributions
Additional voluntary contributions or AVC  are the extra contributions which are made by the employees either into a scheme of their own choice or employers’ pension scheme in order to increase the benefits available on retirement. The additional voluntary contributions are subjected to tax concessions in the United Kingdom. 
 
  
 
 

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​Abiblo Finance – Additional Paid in Capital

5/16/2020

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​Abiblo Finance – Additional Paid in Capital 
Additional paid in capital is the excess received in the USA from the stockholders over the par value of the issued stock. 
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​Abiblo Finance – Adaptive Exponential Smoothing

5/16/2020

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​Abiblo Finance – Adaptive Exponential Smoothing 
Adaptive exponential smoothing is a quantitative forecasting method where the averages derived from historical data are smoothed by a coefficient. 
 
This is allowed to fluctuated with time in connection with changes in the demand pattern. The smoothing effect is greater with the larger coefficient. 
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​Abiblo Finance – Adaptive Expectations

5/16/2020

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Abiblo Finance – Adaptive Expectations
Adaptive expectations are based on the economic macro theory. Based on the hypothesis the economic agents form forecasts or expectations of the future values of certain economic variables by adjusting the past values of the variable. 
 
This may lead to systematic forecasting errors. The rational expectations have been largely superseded the theory of adaptive expectations. 

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​Abiblo Finance – Adaptive Expectations

5/16/2020

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​Abiblo Finance – Adaptive Expectations
Adaptive expectations are based on the economic macro theory. Based on the hypothesis the economic agents form forecasts or expectations of the future values of certain economic variables by adjusting the past values of the variable. 
 
This may lead to systematic forecasting errors. The rational expectations have been largely superseded the theory of adaptive expectations. 

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