Tag: liabilities
Off-Balance-Sheet Financing
DefinitionOff-balance sheet, or Incognito Leverage, usually means an asset or debt or financing activity not on the company's balance sheet. Total return swaps are...
Off Balance Sheet (OBS)
What is an 'Off Balance Sheet - OBS' Off balance sheet (OBS) items refer to assets or liabilities that do not appear...
Joint Liability
Joint and Several Liability in Business
In most common law legal systems, two or more people can be jointly liable for a single liability. Joint...
Quick Ratio
DefinitionIn finance, the acid-test or quick ratio or liquidity ratio measures the ability of a company to use its near cash or quick assets...
Equity
Simply put: Equity = Assets – Liabilities However, since there are a number of different types of assets, this definition cannot encompass them all...
EBITDA-To-Interest Coverage Ratio
What is the 'EBITDA-To-Interest Coverage Ratio' The EBITDA-to-interest coverage ratio is a ratio that is used to assess a company's financial durability...
T-Account
What is a T-account
A T-account is a visual representation of the ledger of a business or individual. It is so named because it looks...
Obligation
What is an 'Obligation' An obligation in finance is the responsibility to meet the terms of a contract. If an obligation is...
FASB 157
What is 'FASB 157' A Financial Accounting Standards Board (FASB) Statement that requires all publicly-traded companies in the U.S. to classify their...