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关键的区别——流动比率和酸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 Equity At the year end, organizations prepare financial statements that represent their activity for the specific period. One such statement that is prepared is the balance sheet that includes a number of items such as assets, liabilities, equity, drawings, etc. The following article discusses two such balance sheet items; equity and liabilities, […]
PVT. LTD. Company vs LTD. Company We often come across the names of companies that are different with some being XYZ PVT LTD while others being XYZ LTD. The initials PVT and LTD stand for private and limited respectively, and though PVT LTD and LTD companies have many similarities, there are differences in nature […]
Liabilities vs Expenses Expenses and liabilities both represent an outflow of funds either to be incurred in the current period as an expense, or to be settled on a future date, in the case of a liability. The terms ‘expense’ and ‘liability’ represent different components in a company’s financial statements, and are different to […]
Liability vs Indemnity Though, liability is a word that is used both in terms of individual as well as company level to describe what is owed to others, it is also used prominently in the insurance field. Here, it is used to describe the amount of money a person owes to another person or party […]
责任与Provision Liability and provision are accounting terms that are spread all over financial statements on the obligation side of the statement. While liability and provision are differentiated on some accounts in some countries, accountants in some other countries treat them as same and make no differentiation. This article attempts to resolve this dichotomy […]
Liability vs Debt Liability and debt are related concepts that are important to understand. At a personal level, an individual may take a loan from a bank to construct a home for his family or to buy a car. He repays this money in installments, and this loan is considered a debt of the person. […]
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 […]
Accountability vs Responsibility Accountability and Responsibility are two words that are quite often confused due to the similarity between their meanings. Strictly speaking, these two words have to be understood differently. The word ‘accountability’ is generally used in the sense of ‘answerability’. On the other hand, the word ‘responsibility’ is used in the sense of […]
Liability vs Negligence Liability and negligence are two terms that are mostly used in connection with personal injury cases in courts of law. Compensation a victim gets often depends upon the ability of his attorney to prove conclusively that the injury was a result of either negligence, or an act of commission by someone that […]
