Unearned Revenue
Unearned revenue is the money that the individual or company receives before providing or delivering the services and goods. It can be the prepayment… Read Article
Current Liabilities
Changes in Net Working Capital – Meaning, Factors, Example and Interpretation
Changes in Net Working Capital: MeaningNet working capital (NWC) is significant for a business, or we can say it is the lifeline of a… Read Article
Acid Test Ratio – Meaning, Formula, Interpretation, and Example
The acid test ratio, or the quick ratio, is a measure of liquidity. This ratio helps determine whether a company has enough liquidity to… Read Article
Short-term Liabilities
A liability is a debt or legal obligation of the business to another individual, bank, or entity. There could be both short-term liabilities as… Read Article
Trade Debt
Meaning and Definition of Trade DebtTrade Debt is defined as the money payable by a Company to its supplier for goods or services received… Read Article
Current Liability – Meaning, Types, Accounting And More
Current Liability is a financial obligation that a company needs to pay within a year of incurring it. Also known as short-term liability, a… Read Article
Accrued Expense – Meaning, Accounting Treatment And More
Accrued expense or accrued liabilities is the term describing the payments or expenses that the company incurs or recognizes but would be due for… Read Article
Working Capital
What is Working Capital?Working capital (WC) is the capital that helps in running the day-to-day operations of a business. It is the gap between… Read Article
Defensive Interval Ratio
Defensive Interval Ratio (DIR): MeaningA defensive interval ratio (DIR) is a very useful liquidity ratio for measuring a company’s liquidity position. It measures a… Read Article
Liquidity Ratios
What are Liquidity Ratios?Liquidity ratios give an idea about a company’s ability to convert its assets into cash and pay its current liabilities with… Read Article
Bills Payable
Meaning of Bills PayableBills Payable (B/P) is a liability document that shows the indebtedness of an individual, an organization, etc. When an individual or an… Read Article