Current ratio [working -capital ratio]

The ratio of the current assets of a company to the current liabilities and used to test liguidity

what is current assets

Assets that form,part of the working capital of a business and are turned over frequently in the caurse of trade.

What is current liabilities

Amount owed by a business to other organization and individuals that should be paid within one year from the balance sheet date

Certificate of Deposits(CD)

A negotiable certificate issued by a bank in return for a term deposits of upto five years

Cash ratio(liquidity ratio)

The ratio of the cash reserve that a bank keeps in coin banknotes ,to its total liabilities to its customers

Capped mortgage

A morgage in which the variable interest rate paid by the borrower cannot rise above a specified levels usually for the first few years of the loan

Capital turnover or Asset turnover

The ratio of sales of a companyy or other organization to its capital employed

Capital outflow

A decrease in a country foreigh assets held in its own country or an increase in assets held abroad

Capital Maintainance concept

The financial capital maintainance concept is that the capital of a company is only maintained if the financial or monetary amount of its net assets at the beggining at the period excluding and distribution to or contribution from owners.

Capital Inflow

An increase in a country in foreigh asset within its own country or a decrease in its assets held abroad