liquidation

Examples of liquidation in the following topics:

• Liquidation

  • In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed.
  • Liquidation is sometimes referred to as 'winding-up' or 'dissolution', although dissolution technically refers to the last stage of liquidation.
  • Liquidation may either be compulsory (sometimes referred to as a 'creditors' liquidation') or voluntary (sometimes referred to as a 'shareholders' liquidation', although some voluntary liquidations are controlled by the creditors) .
  • The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by:
  • LIFO liquidation refers to when a company using LIFO accounting methods liquidates their older LIFO inventory.

• Acid Test Ratio

  • In contrast, if the business has negotiated fast payment terms with customers and long payment terms from suppliers, it may have a very low quick ratio yet good liquidity .
  • In general, the higher the ratio is, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).

• Importance of Cash Flow Accounting

  • The measurement of cash flow can be used for calculating other parameters that give information on a company's value, liquidity or solvency, and situation.
  • Being profitable does not necessarily mean being liquid.

• What Is Cash?

  • Cash and cash equivalents are the most liquid type of company assets used by businesses to settle debts and purchase goods.
  • Cash is the most liquid of all company assets.

• Working Capital Management Analysis

  • Working capital is a financial metric that represents the operational liquidity of a business, organization, or other entity.
  • Working capital (abbreviated WC) is a financial metric that represents the operational liquidity of a business, organization, or other entity.
  • A company can be endowed with assets and profitability but short on liquidity if its assets cannot be converted into cash .

• Introduction to the Statement of Cash Flows

  • The cash flow statement provides information on a firm's liquidity and solvency.
  • The cash flow statement is intended to provide information on a firm's liquidity and solvency.
  • The statement of cash flows shows the liquidity of a company.

• Current Ratio

  • The ratio is an indication of a firm's market liquidity and ability to meet creditor's demands.
  • The current ratio can be use to evaluate a company's liquidity.

• Fair Value Method

  • Under US GAAP (FAS 157), fair value is the amount at which the asset could be bought or sold in a current transaction between willing parties, or transferred to an equivalent party, other than in a liquidation sale.
  • Other examples of sales that would not meet the test of fair market value include a liquidation sale, deed in lieu of foreclosure, distressed sale, and similar types of transactions.

• Introduction to the Balance Sheet

  • The main categories of assets are usually listed first, and typically in order of liquidity (for example, cash on hand appears above accounts receivable).
  • The balance sheet also demonstrates how liquid the business is.

• Types of Receivables

  • If significant, these nontrade receivables are usually listed in separate categories on the balance sheet because each type of nontrade receivable has distinct risk factors and liquidity characteristics.