Financial data are most often recorded using a technique called double-entry accounting. This method relies upon a mathematical construct called the accounting equation. Any time an adjustment is made ...

In accounting terms, a liability is an amount that you owe a creditor. Liabilities generally fall into two categories -- current and long-term. Current liabilities include debts you owe that you ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

Forbes contributors publish independent expert analyses and insights. David John Marotta is a financial advisor covering financial planning. Typically, your financial plan contains assets, liabilities ...

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

Learn how to evaluate free cash flow to gauge a company's financial health and recognize accounting tricks. Understand FCF's role in investment decisions today.

A current ratio is an accounting formula that defines a company's ability to meet its immediate and short-term obligations. The current ratio, sometimes called the liquidity ratio or the working ...

Oil and gas companies are using a gap in US financial reporting rules to omit from their balance sheets hefty obligations to ...

Current liabilities are debts due within a year, including accounts payable and short-term loans. A high current ratio, above 1, suggests a company can meet short-term financial obligations. Investors ...