debit
The concept of liquidity, types and how to calculate
The meaning of the word liquidity is not as confusing a term as it might seem. In essence, liquidity is the ability of something (an asset) to quickly turn back into money without losing value. Liquid, respectively, – convertible into money. Values are high, low and illiquid. The faster and easier an asset can be exchanged for money, the higher its liquidity.
The concept is widespread and applicable to any object – including real estate, stocks, enterprises, markets, etc. There is also the concept of “liquid value” – this is an indicator (in monetary terms) of the appraised object, reduced by the costs associated with its sale. Continue reading
What is a debit and credit balance
“Debit and credit” is perhaps the most famous accounting phrase that even those who are far from the topic of finance know. But do you understand what it is, and can you explain the essence of the concept of debit and credit in simple terms? It’s actually pretty easy.
Debit and credit – what is it
What is reflected in debit and credit? Continue reading
