For example, your employees may earn income that you pay at a later date. This equation can be broken down further by looking at each section in depth. Long-term liabilities are any that are due after a one-year period. These may include deferred tax liabilities, any long-term debt such as interest and principal on bonds, …
When unforeseen expenses arise, a company with high liquidity will be able to easily cover the costs, while a company with low liquidity may be forced to sell off assets or take on debt. This information is useful for analysts inside the company, as well https://accounting-services.net/ as for investors considering whether or not to invest …
What Is a Liquid Asset, and What Are Some Examples? Read More »
