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
The current ratio is one of the most helpful liquidity ratios in financial analysis as it helps to gauge the liquidity position of the business. In… Read Article
Companies calculate the quick ratio to handle the defects present in the current ratio. The acid-test ratio is a more progressive alternative to the… Read Article
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
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
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
Why is Improvement in Current Ratio Important?The current ratio is a critical liquidity ratio utilized extensively by banks and other financing institutions while extending… Read Article