Liquid Assets
12Meaning of Liquid assets Liquid assets are those assets that are equivalent to or as good as cash. Their liquidation is secure, meaning that the holder can convert them …
Lockbox Banking – Meaning, Types, Benefits and More
Lockbox Banking is a commercial service offered by the banks to the companies to support the quick receipt of payments from the customers. Under this, the bank and the …
Current Yield – Meaning, Importance, Formula and More
The current yield is the annual income from a financial instrument or an investment, usually bonds, based on its current price, instead of the face value. We may also …
Asset Coverage Ratio
1Meaning of Asset Coverage Ratio The Asset Coverage Ratio is a financial ratio that describes how well a company is in a position to repay its debt. It shows …
Bear Market – Meaning, Phases, Strategies and More
A Bear Market is a phase when the stock prices are falling. Usually, when the price of securities falls 20% or more from the recent highs or in a …
Certainty Equivalent – Meaning, Importance and More
Certainty Equivalent is the return or cash that an investor will accept today than the higher but uncertain return in the future. Or, we can say it is the …
Financial Structure – Meaning, Importance and More
The Financial structure is how a company finances its assets and operations. Or, we can say it is the mix of debt and equities that a company uses to …
Opportunity Cost – Meaning, Importance, Calculation And More
1Meaning of Opportunity Cost Opportunity Cost means the Cost or price of the next best alternative that is available to a business, company, or investor. The next best choice …
Credit Period – Meaning, Formula, Advantages and More
The credit period is the timeframe when a person purchases a goods or service, and when he or she pays for it. Or, we can say it is the …
Compensating Balance – Meaning, Example, Accounting Treatment
Compensating balance is the least or minimum balance that an organization or an individual needs to keep with the lender. The primary objective of such a balance is to …
