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Essay

Financial Terms

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Issue:

Business

 

Written by:

Warren A

 

Date added:

June 11, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

7 / 1698

 

Was viewed:

7502 times

 

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Essay content:

Both the total amount of assets and the makeup of asset accounts are of interest to financial analysts. The balance sheet also includes two categories of liabilities, current liabilities (debts that will come due within one year, such as accounts payable, short-term loans, and taxes) and long-term debts (debts that are due more than one year from the date of the statement)...
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Liabilities are important to financial analysts because businesses have same obligation to pay their bills regularly as individuals, while business income tends to be less certain. Long-term liabilities are less important to analysts, since they lack the urgency of short-term debts, though their presence does indicate that a company is strong enough to be allowed to borrow money...
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