finance

Accounting Information System

The accounting information system records transactions and summarizes the results. The goal of accounting is to issue financial statements. The accounting system records transactions and prepares financial statements. Chapter 3: Accounting Information System This is Intermediate Accounting Chapter 3. For more Intermediate Accounting topics, see Intermediate Accounting Study Guide. Debits and Credits Double-entry accounting is the […]

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Liquidity Ratios

Liquidity ratios show the ability of a company to pay its short-term debts. The liquidity ratios include the current ratio, quick ratio, and cash ratio. Liquidity ratios compare current assets and current liabilities to determine a company’s ability to pay its short-term debt. What is liquidity? Liquidity is a financial concept about an asset’s “nearness

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