Relationship between QA and CA Quick assets are those current assets that can be easily converted into cash, such as cash, marketable securities, and accounts receivables. Current liabilities, on the other hand, are those obligations that are due within one year. Such as accounts payable, short-term loans, and accrued expenses. The relationship between quick assets… Read More »
Difference between current assets and current liabilities The measure that reflects the difference between current assets and current liabilities is called working capital. Working capital is calculated by subtracting the total current liability of a company from its total current asset. It is an important metric for businesses to monitor, as it indicates their ability… Read More »
Current assets to proprietor’s fund ratio The current assets to proprietor’s fund ratio is a financial metric used to assess the liquidity and financial health of a business. It measures the relationship between the current assets, which are assets that expect to convert into cash within one year, and the proprietor’s fund, which represents the… Read More »
Capital structure Capital structure refers to the composition of a company’s sources of funds, including debt, equity, and other forms of financing. It represents the way a company finances its operations, growth, and investments. The way a company finances its operations, known as its capital, is crucial as it affects the company’s financial performance, level… Read More »
Private sector enterprises are businesses that are owned and operated by individuals or groups of individuals rather than the government. 1.Private Ownership: Private sector enterprises feature always own and control by private individuals or organizations. The owners bear the responsibility for the success or failure of the business. 2.Profit Motive: Private sector enterprises are driven… Read More »
Capital Stock and Share Capital Capital Stock and Share Capital,The terms “capitals stocks” and “share capitals” are often used interchangeably and both refer to the amount of capital that a company has raise through the issuance of shares. However, there can be some subtle differences in how the terms are use in certain contexts.… Read More »
Share capital Liability Share Capital Liability, Is Share Capital Liability? When discussing the financial structure of a company, the term “share capital” frequently arises. It represents the funds raised by a company through the issuance of shares to shareholders. While share capital is an essential component of a company’s equity, its classification as liability… Read More »
What is the Difference Between Capital and Non-Current Capital? When managing or analyzing a business, understanding different financial terms is crucial. Two commonly used terms in financial discussions are capital and non-current capital. While they may seem similar, they have distinct roles in the financial framework of a company. In this blog, we’ll break down… Read More »
Estimation and Valuation Estimation and valuation are two terms used in accounting and finance to assess the worth or value of an asset or liability. Estimations is the process of making an educated guess or calculation of the value of an asset or liability. It involves using historical data, market trends, and other relevant information… Read More »
Difference between Capital Employed and Working Capital In the world of finance and accounting, understanding key concepts such as capital employed and working capital is crucial for evaluating a business’s financial health and operational efficiency. While both terms relate to the funds used in a business, they serve different purposes and are calculated in distinct… Read More »
