2 do the definitions of current assets and current, Finance Basics

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2 do the definitions of current assets and current

1. What is meant by liquidity in financial statements?

2. Do the definitions of current assets and current liabilities suggest a quick way of looking at the firm's ability to meet its financial obligations (pay its bills) over the near term? (Hint: Think in terms of ratios.)

3. How are capital and working capital different?

4. What is leverage, and how does it work? What is the main concern about using it?

5. Define the term tax base and discuss common bases. What government units tax on each? What are these taxes commonly called?

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