Qualifies as Liquid Net Worth Qualifies as Liquid Net Worth, Liquid net worth is the term used to describe the part of someone’s or an organization’s total net worth that comprises assets which can be easily convert into cash without experiencing substantial depreciation in value or time delay. The specific assets that qualify as… Read More »
Can Liquid Net Worth be Higher Than Net Worth Understanding the concepts of net worth and liquid net worth is essential for effective financial management. But one question often arises: Can liquid net worth be higher than total net worth? Let’s break this down. Defining Net Worth and Liquid Net Worth Net Worth is the… Read More »
Types of Reserves There are typically two types of reserves that can appear on a corporate balance sheet: revenue reserves and capital reserves. Revenue reserves are create from profits earn by the company and not distributed as dividends to shareholders. These reserves can be used for a variety of purposes, such as reinvesting in… Read More »
Difference Between Money and Fund Difference between money and fund: It refers to the physical currency and coins that are use to make purchases or exchange goods and services. On the other hand, a fund refers to a pool of cash that is collect from multiple investors and manage by an investment company or… Read More »
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 »
Working capital management Working capital management refers to the administration of a company’s short-term assets and liabilities to ensure it operates efficiently and maintains adequate cash flow. It plays a crucial role in a company’s financial health by balancing liquidity (the ability to meet short-term obligations) with profitability. By optimizing working capital, businesses can sustain… Read More »
