Notes Payable

Notes Payable

Definition of Notes PayableWhen a company issues promissory notes, it maintains the records of the amount of promissory notes issued in a ledger account.… Read Article
Cash Ratio

Cash Ratio

What is a Cash Ratio?The cash ratio, also known as the absolute cash ratio, is one of the stringent liquidity ratios. It defines the… Read Article
Disadvantages of Trade Credit

Disadvantages of Trade Credit

The advantages and disadvantages of trade credit are important points of consideration before forming any decision relating to trade credit. The key advantage of… Read Article
Cost of Trade Credit

Cost of Trade Credit

Does Trade Credit also Cost?The statement “trade-credit has no explicit cost” is a misleading statement. It is only partially correct. The trade credit is… Read Article
Advantages of Trade Credit

Advantages of Trade Credit

Trade credit has various advantages, making it a favorite source of working capital for all levels for buyers and a promotional tool for suppliers.… Read Article