The free guide

Bank Loans and Overdrafts

Bank Loans Bank Loans are fixed amount of money lend by a bank to a company, in return for interest on principle amount, both has to be repaid in future with installments. A repayment schedule is formulated to specify the time of each installment.  These long-term loans are usually used to finance long-term assets like […]

Current Assets: Definition & Example

Understand Current Assets (also known as short term assets) are resources, owned by a company to receive future monetary benefits within one year. These resources are utilized to fund routine transactions and to pay ongoing expenses, for example, cash or cash equivalent, inventories, prepaid expenses and debtors etc. are types of current assets. These assets […]

Bankruptcy vs Liquidation

Bankruptcy Bankruptcy is a financial condition, in which the court declared a person or a company insolvent, resulting in all assets of the company will dispose of to discharge company’s obligations. For example, if ABC Company goes bankrupt, it’s all current and non-current assets will be sold to settle obligations like long term loans, creditor […]

Current and Fixed Assets

Assets are those items which are supposed to provide monetary benefits in the future to a company like a purchase of computer system is an asset which may provide benefits for coming four years or more. Current Assets Current assets are supposed to provide benefits for maximum one year or indented to consume within that […]

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