0
Liquidity means availability of enough cash to payout all the liabilities of business at the time when all liabilities or any liability become due to be paid.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What does debit mean in accounting terms?
take away from
What does appreciation mean in accounting terms?
Great value.
Is accrual accounting more closely related to a company’s goal of profitability or liquidity?
Profitability
What does CO PG mean in accounting terms?
There are a number of things that CO PG may mean in accounting. In most cases, these are used to mean controlling page. The meanings may vary depending on the context.
What is liquidity in accounting?
Liquidity is the ability of the business to pay immediate debts. Cash at bank and cash in hand are perfect liquid assets. Debtors are near liquid and closing stock is an illiquid asset.
What does appreciation mean in accounting terms?
Great value.
What does debit mean in accounting terms?
take away from
Why is liquidity?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Why is liquidity important?
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Is accrual accounting more closely related to a company's goal of profitability or liquidity?
Profitability
Is accrual accounting more closely related to a company’s goal of profitability or liquidity?
Profitability
What does CO PG mean in accounting terms?
There are a number of things that CO PG may mean in accounting. In most cases, these are used to mean controlling page. The meanings may vary depending on the context.
What is liquidity in accounting?
Liquidity is the ability of the business to pay immediate debts. Cash at bank and cash in hand are perfect liquid assets. Debtors are near liquid and closing stock is an illiquid asset.
What is Dr and Cr stnd for?
In accounting Dr stands for Debit Cr stands for credit the terms literally mean Debit (left side of the accounting equation) Credit (right side of the accounting equation)
What does duality mean in accounting terms?
Every transaction has a dual effect (where the money came from, where the money goes to).
What does reliability mean in terms of accounting?
Reliability is a basic accounting principle, known also as the objectivity principle. The principle means that only transactions that can be verified will be entered into a company's books.
Why accounting information is necessity?
Accounting Information is necessery to know about the company's financial & liquidity postioon, so as to enable the management(owener/share holder) to act in accordence with the account information available to them.
