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 ...

Publicly traded corporations are required to publish quarterly balance sheets that allow shareholders to compare a company’s assets with its liabilities. It’s also a good practice for private ...

Business leaders love to talk about revenues, net profits and assets. After all, those are all positive numbers on a balance sheet that can make a company look great. They are also how a company ...

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.

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 ...

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 ...

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Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

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 ...