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Definition of Current liabilities
Amount owed for salaries, interest, accounts payable and other debts due within 1 year.
Bills a company must pay within the next twelve months.
Amounts due and payable by the business within a period of 12 months, e.g. bank overdraft, creditors and accruals.
current means that these liabilities require payment in
Debts or other obligations coming due within a year.
Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid
The difference between total assets on the one hand and current liabilities and noncapitalized longterm
current assets minus current liabilities. Often simply referred to as working capital.
Indicator of a company's financial strength (or weakness). Calculated by taking current assets
A capitalization ratio comparing current liabilities plus long-term debt to
Defined as the difference in current assets and current liabilities (excluding short-term
The management of current assets and current liabilities to maximize shortterm liquidity.
A ratio that shows how well a company could pay its current debts using only its most liquid or “quick” assets. It’s a more pessimistic—but also realistic—measure of safety than the current ratio, because it ignores sluggish, hard-toliquidate current assets like inventory and notes receivable. Here’s the formula:
A ratio that shows how many times a company could pay its current debts if it used its current assets to pay them. The formula:
Purchases of goods or services from suppliers on credit to whom the debt is not yet paid. Or a
current assets less current liabilities. Money that revolves in the business as part of the process of buying, making and selling goods and services, particularly in relation to debtors, creditors, inventory and bank.
A method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.
The sum of cash, accounts receivable, and short-term marketable
A measure of the ability of a company to use its current assets to
A measure of how easily a company can use its most liquid current
total current assets minus total current liabilities
The amount of a company’s current assets minus its current liabilities;
net working capital
current assets minus current liabilities.
current assets minus current liabilities
current assets divided by current liabilities. This ratio indicates the extent to which the claims of short-term creditors are covered by assets expected to be converted to cash in the near future.
The simple ratio of a company's liquid assets to current liabilities. Such assets include cash, marketable securities, and accounts receivable.
Funds invested in a company's cash, accounts receivable and inventory. Net working capital is current assets minus current liabilities.
Net flow of goods, services, and unilateral transactions (gifts) between countries.
Value of cash, accounts receivable, inventories, marketable securities and other assets that
A bond selling at or close to par, that is, a bond with a coupon close to the yields currently
In Treasury securities, the most recently auctioned issue. Trading is more active in current
current time to maturity on an outstanding debt instrument.
Current rate method
Under this currency translation method, all foreign currency balance-sheet and income
Indicator of short-term debt paying ability. Determined by dividing current assets by current
For bonds or notes, the coupon rate divided by the market price of the bond.
Related: Benchmark issues
Amount owed for leases, bond repayment and other items due after 1 year.
Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
What a company owes to its creditors. In other words, debts.
Bills that are payable in more than one year, such as a mortgage or bonds.
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Debts that the business owns.
Amounts owing after more than one year.
Amounts owed by the company.
current refers to cash and those assets that will be turned
Calculated to assess the short-term solvency, or debt-paying
See operating liabilities.
see simultaneous engineering
Typically the cash, accounts receivable, and inventory accounts on the
Under target costing concepts, this is the cost that would be applied to a
This is typically the accounts payable, short-term notes payable, and
Annual coupon payments divided by bond price.
That part of the balance of payments accounts that records demands for and supplies of a currency arising from activities that affect current income, namely imports, exports, investment income payments such as interest and dividends, and transfers such as gifts, pensions, and foreign aid.
A variable like GDP is measured in current dollars if each year's value is measured in prices prevailing during that year. In contrast, when measured in real or constant dollars, each year's value is measured in a base year's prices.
The percentage return on a financial asset based on the current price of the asset, without reference to any expected change in the price of the asset. This contrasts with yield-to-maturity, for which the calculation includes expected price changes. See also yield.
Current Tax Payment Act of 1943
A federal Act requiring employers to withhold income taxes from employee pay.
Current Income Tax Expense
That portion of the total income tax provision that is based on
Cash and other company assets that can be readily turned into cash within one year.
Compares a stock's market value to the value of total assets less total liabilities (book
Under this currency translation method, the choice of exchange rate depends on the
Refers to the ability of a business to pay its liabilities on time
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