What is the profit margin and how can it be used? 14.What are liquid assets and...

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Accounting

What is the profit margin and how can it be used?

14.What are liquid assets and why are they important?

15.What are the advantages to a seller of being paid by creditcard?

16.How does the aging of receivables facilitate cashmanagement?

17.What is the advantage of just-in-time inventory when itworks perfectly?

18.Why do some companies prefer accelerateddepreciation?

19.Where does depreciation hit the financial reports,specifically income statement and Balance sheet?

20.What is the accounting term used to describe the costexpensed over time related to an intangible asset?

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Answer & Explanation Solved by verified expert

3.7 Ratings (380 Votes)

1 Proit margin is the margin or the gap between the selling price and the cost of certain product Goods etc which is earned by the seller it depicts the net income earned by the seller from the business profit margin is calculated as Profitsales 100 in percentage it can be used to asses the amount earned within different accounting periods and actions can be taken to improve the profit margin time to time 2Liquid assets refer to the most cashable or the assets which can be converted easily into cash within very short time period generally 3 months for example liquid cash and cash at bank marketable securities short term investments not more than 3 MOnths etc liquid assets are important to fulfill the working capital requirements ie the day to day cycl of the business as it hepls in See Answer

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