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liquidity position of a firm is the amount of liquid assets ,that is, cash ,bank balance and those assets which can be converted into cash as and when required by the firm which is owned by the firm currently.
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What is called a discount given to encourage prompt payment?
Cash Discount: Reduction in price given by the creditor to the debtor is known as cash discount. This discount is intended to speed payment and thereby provide liquidity to the firm. They are sometimes used as a promotional device. we also explain that discount is relaxation in price. http://en.wikipedia.org/wiki/Discounts_and_allowances#Trade_discount
What does the Sullivan and Cromwell Firm actually do?
The Sullivan & Cromwell Firm is a lawyer firm dealing with many different legal cases. They have offices located in Beijing, Frankfurt, Hong Kong, New York, and Los Angeles.
What firm invented computers?
no company
What are the principle of treasury management?
The principles of Treasury management are to maintain control over a company's finances so that adequate liquidity can meet near-term obligations.
What did Roman Gladiators use to firm up muscles?
They did a lot of physical exercises. Fighting training also kept their muscles firm. The Romans did not have muscle-boosting substances.
How can a company improve its liquidity position?
How can the liquidity position of a company be improved
What is liquidity decision?
The decision made for the management of current asset that affects a firm's liquidity.
What procedure would you adopt to study the liquidity of a business firm?
The procedure you would adopt to study the liquidity of a business firm is to compare the liquidity rations of the business. You do this by comparing the businesses most liquid assets with its short-term liabilities.
Do liquidity ratios indicate how fast a firm can generate cash to pay bills?
Yes, Liquidity ratios indicate the firm's ability to fulfill its short term obligations like bill pay, etc. Yes, Liquidity ratios indicate the firm's ability to fulfill its short term obligations like bill pay, etc.
Why are provisions made for bad debts?
If it is a doubtful bad debt the provision to be made. It is helpful to the firm to face the debitor if turns into a bad debt in future, in addition to that, the liquidity position will increase.
What is Net Liquidity Balance?
The net liquidity of a position (s) is the cash balance + unrealized g/l.
Which group of ratios shows the extent to which the firm is financed with debt?
liquidity ratio
The primary concern of creditors when assessing the strength of a firm is the firms?
short-term liquidity
What is a Conservatively financed firm?
that would bring liquidity ad borrowing capacity to the marriage
What is absolute liquidity?
Absolute Liquid Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the absolute liquid assets
What are the objectives of cash budget?
Cash is the most important for running of day to day business activities so it is important for the management to know that when they are short in liquidity or excess from needs so they have enough liquidity at all time and not short of money when required as well as not have excess cash in hand from needs.
What ratio or other financial statement analysis technique will you adopt for analysis of liquidity of a firm?
What ratio or other financial statement analysis technique will you adopt for this.
