The quick ratio, often referred to as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. It's calculated as (cash + ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Yarilet Perez is an experienced multimedia ...

For a variety of reasons, some companies invest in marketable securities as a part of their ongoing operations. Commercial banks buy debt securities. Manufacturers buy commodity contracts. Companies ...

Accounts receivable represents the dollar value of business that your company has transacted for which it has not yet received payment. It appears on the "assets" side of your balance sheet. A balance ...

Reviewed by JeFreda R. Brown Fact checked by Vikki Velasquez Key Takeaways Accounts receivable are future cash inflows but ...

Marketable securities are a form of security or debt that can be converted or sold for cash in a year or less. Their liquidity comes from both the time they can be redeemed and their redemption rate.

A balance sheet is a financial document that presents the financial status of a business through an accounting of a company’s assets, liabilities, and equity. A balance sheet, when looked at with a ...

Your company's balance sheet is an equation. On one side of the equals sign, the Corporate Finance Institute says, you have your total assets. On the other, you have total liabilities and total ...

For a variety of reasons, some companies invest in marketable securities as a part of their ongoing operations. Commercial banks buy debt securities. Manufacturers buy commodity contracts. Companies ...