What are Contingent Assets and Contingent Liabilities?
Contingent Assets Contingent assets are those in which the likelihood of economic profit depends completely on future occurrences that cannot be controlled by the company. These assets are not included in the balance sheet due to the unpredictability of future events. However, they are presented in the financial statement notes of the company. Typically, these […]
What is the Current Ratio and Current Ratio Formula?
What is the Current Ratio? The current ratio is a measure of the short-term financial liquidity of a business. It is the ratio of current assets to current liabilities. It is necessary to understand current assets and current liabilities’ meanings to find out the current ratio of a business entity. Current Assets Current assets are […]