liquidity

Examples of liquidity in the following topics:

• Liquidity

  • In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay his debts when they fall due.
  • The main categories of assets are usually listed first, and typically in order of liquidity.
  • Liquidity also refers both to a business's ability to meet its payment obligations, in terms of possessing sufficient liquid assets, and to such assets themselves.
  • The liquidity ratio (acid test) is a ratio used to determine the liquidity of a business entity.
  • The formula is the following: LR = liquid assets / short-term liabilities.

• Liquid to Gas Phase Transition

  • Vaporization of a sample of liquid is a phase transition from the liquid phase to the gas phase.
  • Vaporization of a sample of liquid is a phase transition from the liquid phase to the gas phase.
  • The vapor pressure of a liquid is determined by the attractive forces that act on the molecules at the surface of a liquid.
  • Also, since the bubble is formed within the liquid, the hydrostatic pressure of the overlaying liquid will add to this effect.
  • Run the model, then heat the liquids.

• Liquidity and Bond Prices

  • Liquidity causes bond prices and interest rates to differ.
  • For instance, U.S. government securities are widely traded and are the most liquid.
  • Then the secondary markets expand for government bonds boosting the liquidity for these securities.
  • Consequently, the investors are attracted to the government bonds because they are more liquid.
  • Taking the difference between the two interest rates, we measure the degree of liquidity.

• The Imperative of Liquidity

  • Organizations must carefully manage their cash flow statements to ensure appropriate liquidity to avoid missing investment opportunities.
  • To accurately frame the discussion of cash flows, an understanding of liquidity is integral.
  • Company C will capture the opportunity, as the capital they are using is more liquid.
  • When considering cash flow, it is important to understand liquidity risk.
  • Business managers and accountants, when considering their investment options, should keep liquidity in mind at all times.

• Liquidation Preference

  • The main purpose of a liquidation where the company is insolvent is to satisfy claims in the manner and order prescribed by law.
  • The liquidator must determine the company's title to property in its possession.
  • Shareholders (Liquidating distribution) - Most preferred stocks are preferred as to assets in the event of liquidation of the corporation.
  • Stock preferred as to assets is preferred stock that receives special treatment in liquidation.
  • Summarize how the liquidation preference determines which claims will be paid if a company becomes insolvent

• Surface Tension and Capillary Action

  • Such forces cause liquid drops to cling to window panes, for example.
  • In this section we examine effects of cohesive and adhesive forces in liquids.
  • In the bulk of the liquid, each molecule is pulled equally in every direction by neighboring liquid molecules, resulting in a net force of zero.
  • This creates some internal pressure and forces liquid surfaces to contract to the minimal area.
  • If the diameter of the tube is sufficiently small, then the combination of surface tension (which is caused by cohesion within the liquid) and adhesive forces between the liquid and the container act to lift the liquid.

• Surface Tension

  • The tendency of the surface of a liquid to resist a force and behave like a membrane and is a result of cohesion between liquid molecules.
  • This effect is a result of cohesion of the molecules of the liquid causing the surface of the liquid to contract to the smallest area possible.
  • The surface of a liquid in a container is an interface between the liquid, the air, and the container.
  • The contact angle is measured in the liquid and depends on the relative strength of cohesive forces in the liquid and adhesive forces between the liquid and interface materials.
  • Summarize the cause for different surface tensions at a liquid's surface

• Water’s States: Gas, Liquid, and Solid

  • The formation of hydrogen bonds is an important quality of liquid water that is crucial to life as we know it.
  • In liquid water, hydrogen bonds are constantly formed and broken as the water molecules slide past each other.
  • This makes ice less dense than liquid water, a phenomenon not seen in the solidification of other liquids.
  • With most other liquids, solidification when the temperature drops includes the lowering of kinetic energy between molecules, allowing them to pack even more tightly than in liquid form and giving the solid a greater density than the liquid.
  • Hydrogen bonding makes ice less dense than liquid water.

• 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.

• Capillary Action

  • If the diameter of the tube is sufficiently small, then the combination of surface tension (which is caused by cohesion within the liquid) and adhesive forces between the liquid and container act together to lift the liquid.
  • The height (h) of a liquid column is given by:
  • Capillary action acts on concave menisci to pull the liquid up, increasing the favorable contact area between liquid and container, and on convex menisci to pull the liquid down, reducing the amount of contact area.
  • When considering how liquids will behave on surfaces, if the liquid molecules are strongly attracted to the solid molecules then the liquid drop will completely spread out on the solid surface.
  • The rise or fall of liquids in a capillary tube depends upon the interactions between the tube and the liquid.