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Liabilities

Legally binding obligations a company has to settle debts. Listed on balance sheets, they can include accounts deferred revenues, payable, wages expense, and taxes. They are also split between current liabilities, which must be paid off within one year, and long-term liabilities, which are spread over a number of years.

Liquidity

The level to which an asset or security can be traded on a market without fluctuating price, or the degree to which an asset can be quickly converted into cash. Liquid assets are inevitably safer investments than illiquid assets, as they can be easily bought or sold for cash. Empirical examples may include money market securities or other widely traded stocks.

Management accounting

Management accounting, otherwise termed cost accounting, is the process of interpreting and relaying information deemed essential in the completion of an organisation’s given objectives. The process is often reverted to in supporting strategic business decisions at an executive level.

Majority Interest

The term is used to refer to an individual or group of investors working in partnership, whose total voting share in a company is large enough that no other individual or block of shareholders can oppose a motion. Typically the investor(s) control 50 percent, plus one of total shares.