Liabilities Definition Macintosh PICT image format is not supported A liability is probable future payment of assets or services that company is presently obligated to make as a result of past transactions or events
Income Measurement Concepts Illustration Facts: Company with$100,000 in cash Buys condo for$100,000 Rents condo for $12,000 per year End of the first year: Condo valued at
Liquidity and Working Capital Basics Company Liquidity refers to the ability to meet short- term obligations Liquidity is the ability to convert assets into cash or to obtain cash Short term is the longer of one-year or the company operating cycle