The main difference between the two is that the repayment of liabilities is required by law, unlike the repayment of equity which is discretionary. Also, in case of bankruptcy, all liabilities of a business need to be repaid before any amount is returned to the owners. Without understanding assets, liabilities, and equity, you won’t be… Continue reading Accounting Equation Overview, Formula, and Examples
Respective approaches for AAA get defined and staffed in the context of mobile services, when using smart phones as e.a. Intelligent agents or smart agents for automated capture of accounting data . Since smaller companies use fewer resources and do not have many activities/operations, the cost of transactions tends to be low. Thus, it is… Continue reading Activity-Based Costing Overview, Approach, Benefits
A cash asset ratio below one may indicate a company in financial distress. Foreign governments may impose limitations on foreigners’ ownership of interests in local issuers, restrictions on the ability to repatriate assets, and may also impose taxes. Any of these events could cause the value of the Fund’s investments to decline. Cash equivalents are… Continue reading Liquidity Crisis: A Lack of Short Term Cash Flow
