Glossary
Cash, accounts receivable, inventory, and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the normal course of business, usually within a year.
Debt or other obligations due to be paid within the current period, usually a year.
Those portions of loans that are due to be repaid BY the organization within the current year.
Those portions of loans that are due to be paid back to the organization within the current year.
Current assets divided by current liabilities. The ratio shows a company's ability to pay its current obligations from its current assets.
An amount owed for funds borrowed. Generally, debt is evidenced by a note, bond, mortgage or other instruments that states the repayment and interest provisions.
Change in unrestricted net assets plus interest plus non-cash depreciation divided by current notes payable. Measures an organization's ability to pay its current debt obligations.
The amount of payment due at regular intervals (usually monthly, quarterly, or annually) to meet a mortgage or debt agreement.
Total liabilities divided by total net assets (sometimes total unrestricted net assets). Sometimes the liabilities are restricted to long-term liabilities only. Measures an organization's debt relative to its equity or net asset base.
The equivalent of a mortgage in some jurisdictions. The borrower conveys title to the property to be held as security to a trustee, who holds the title as security for the benefit of the lender. The transfer is accompanied by a trust agreement setting forth the terms of the security arrangement.
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