Current Assets

What is meant by current assets? All those assets that a company or a business can easily convert into cash within a short period are known as current assets, typically this is within a 12 month period. They can be utilized to fund business operations and used to cover short-term liabilities. These assets continually fluctuate […]

Quick Ratio

This post will take a dive into the concept of the quick ratio, its interpretation, and an example of the same. The quick ratio, commonly referred to as the acid-test ratio, measures the ability of a business to pay its short-term liabilities using only the current assets that are readily convertible into cash. These ‘quick’ […]

Current Ratio

The current ratio, commonly referred to as the current liquidity ratio or the working capital ratio, is one of the most important liquidity measures to assess a business’ performance. This post will take a dive into the concept of the current ratio, its interpretation, and an example of the same. The current ratio measures a […]

Cash Flow

Cash Flow Statement A cash flow statement is a financial statement that contains aggregated data and the value of all the cash Inflows and Outflows that a company receives from its current business operational activities, investing and financing activities. A detailed cash flow statement is crucial for investors, creditors, shareholders, vendors, regulators, taxing entities, and […]

Income Statement

Business Income Statement and its Importance For every business, it is important to record their revenue and expenses in an organized manner. The arrangement of profit and loss information in the form of data is useful when making new strategies and work policies. A business with regularly updated and gathered income & expense details can […]

Accounts Receivable

What is meant by accounts receivable? Accounts receivable come into existence when a business offers products or services to its customers on credit. The amount of money that the customers owe to the company is written as an asset on the balance sheet. This asset represents the money that a customer has to pay to […]

Non Current Assets

If you are interested in the world of finance perhaps you´ve heard a few times the term Non Current Assets. If you want to expand your knowledge on this term, we encourage you to read the following article. What are non-current assets?   The assets that cannot be quickly converted into cash or cash equivalents […]

accounts payable

Accounts Payable

What is Accounts Payable and How to Manage Them? When a business purchases a service or a product from a supplier (not paying cash at the time), the payment amounts are recorded into the company’s financial statements and released when the due date states on the invoice (often 30 days later). The record of unpaid […]

balance sheet

Balance Sheet

What is the Balance Sheet of a Company? The balance sheet is the ‘statement of position’ of the company. The regular review and analysis of the financial position of your company is important to keep your business on the right track. Without the knowledge of the economic health and investment return of your company, it […]

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