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Sometimes you’re better off paying your debt off over time rather than hurting your cash flow or hampering future potential investment gains by selling assets to quickly pay off debt. If you don ...
When it comes to debt repayment, choose a strategy that works best for you. Options include paying off your highest-interest debt first, paying off the smallest debt first or paying the debts ...
But if you need a business loan or line of credit, understanding the relationship between assets, liability and equity is key. Taking out a loan means adding to your liability, and you need to be ...
The quick ratio is calculated by deducting inventories and prepayments from current assets and then dividing by current liabilities, giving a measure of the ability to meet current liabilities from assets that can be readily sold. A better way for a trading corporation to meet liabilities is from cash flows, rather than through asset sales, so ...
Current ratio is generally used to estimate company's liquidity by "deriving the proportion of current assets available to cover current liabilities". The main idea behind this concept is to decide whether current assets which also include cash and cash equivalents are available pay off its short term liabilities (taxes, notes payable, etc.)
Debt is an obligation that requires one party, the debtor, to pay money borrowed or otherwise withheld from another party, the creditor. Debt may be owed by a sovereign state or country, local government , company , or an individual.
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