Financing activities are transactions involving long-term liabilities, owner’s equity and changes to short-term borrowings. These activities involve the flow of cash and cash equivalents between the company and its sources…
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Finance vs. Economics: What’s the Difference?
Finance vs. Economics: An Overview Although they are often taught and presented as separate disciplines, economics and finance are interrelated and inform and influence each other. Investors care about these studies because…
What Is a Good Liquidity Ratio?
Liquidity ratio for a business is its ability to pay off its debt obligations. A good liquidity ratio is anything greater than 1. It indicates that the company is in…
Finance FAQs
What Is the Purpose of Finance? Finance involves borrowing & lending, investing, raising capital, and selling & trading securities. The purpose of these pursuits is to allow companies and individuals…
