Is the provision for taxation a liquid asset or not The provision for taxation is not considered a liquid asset. In financial terms, a liquid asset refers to an asset that can easily convert into cash without significant loss in value. While the provision for taxation represents an estimated amount set aside by a company… Read More »
The working capital cycle time formula The working capital cycle time formula, also known as the cash conversion cycles, is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash. The formula is: Working capital cycle times = Inventory days + Receivables days –… Read More »
Accounts Receivable Current Asset Accounts Receivable Current Asset, Yes, it is generally classify as a current asset on a company’s balance sheet. This is because account receivable represent amounts owed to the company by its customers for goods or services that have already been deliver or provide, but for which payment has not yet… Read More »