- Monday, November 10, 2008, 6:10
- Finance
- 484 views
Assets
Something that have value is called assets, assets are the resources such as land,building,furniture.
assets are futher divided into two types.
1- Tangible Assets
2- Intangible assets
Tangible Assets - Aseets which pysically exisit and we can see and touch it are the tangible assets. For example - Land,building,cars,furnitures,computers etc.
Tangible Assets are further divided into two parts.
Current Assets - Assets can be easily converted into cash within a year ...
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- Monday, November 10, 2008, 5:19
- Finance
- 799 views
Liquidity ratios
A liquidity ratio is a useful tool to determine the company short term financing position. The higher the value indicates company better liquidity position in other words company assets are valuable and can easily converted into cash. Most common liquidity ratios are current ration quick ratio.
Current Ratio - Current Assets/current Liabilities
The current ratio derives the results for company current assets divided by current liabilities. ...
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