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Key Difference – Current Ratio vs Acid Test Ratio Liquidity, one of the most crucial aspects of a business, refers to the convenience of converting assets into cash. Even though the main objective of a company is to be profitable, liquidity is more important in the short term in order to run smooth operations. […]
Liability vs Asset Ask anyone in your circle about the assets he has, and invariably the answers would include home and car. But, is your car and asset for you? Or for that matter, your home, which you have bought after taking a loan from a bank? Most people remains confused and cannot answer this […]
Capital vs Asset Words like capital and asset are very frequently encountered by accountants and those involved in preparing financial statements of businesses. These are related concepts because of which sometimes people get confused whether it is capital or an asset that is the correct term to be utilized in the financial statement. There is […]
Capital vs Capitol As capital and capitol are two similar sounding words with different usage, we should learn the difference between capital and capitol. There are many similar sounding words in English language that become confusing for many to remember as they have different meanings and their correct usage is necessary. Two such homonyms […]
CAPEX vs OPEX | Capital Expenditure and Operational Expenditure CAPEX and OPEX are terms that are encountered quite often in business valuation. What is the true worth of a business and how does the value of a business change over time are measured in terms of Capital Expenditures (CAPEX) and Operating Expenditures (OPEX). It has been […]
