Author: adminkobp

From an economic standpoint, the Keynesian theory suggests that during deflation, the anticipation of lower prices reduces consumer demand, causing companies to slash prices further in a bid to attract customers. This can result in a vicious cycle where demand continues to fall, and businesses struggle to stay afloat. On the other hand, the Monetarist… Continue reading Downward demand spiral

Keeping a log of adjustments ensures transparency and aids in audits or future reviews. Understanding these elements helps maintain financial stability and make informed decisions. Choose an account type that fits best with your lifestyle or business plan and commit to staying updated on your balance details, transaction history, and growing investment strategies. For example,… Continue reading Account balance financial definition of Account balance

If it is an indexed or variable annuity, your money will grow if market conditions allow. However, there is the risk of loss if the market declines and doesn’t recover by the time you need to begin making withdrawals. A retirement annuity is a financial product that provides an income in retirement. It is similar… Continue reading Annuities in Advance financial definition of Annuities in Advance

I say normal balances because they don’t always have balances on those sides—but they should. For example, if your checking account is in overdraft then you have negative cash, which would show a balance on the right side instead. It basically means you have a cash liability instead of asset, which is not good. What… Continue reading T Accounts Examples in Accounting