Acid test ratio vs current ratio

The Current ratio and the Acid-test ratio, both fall under the category of financial ratios.   These two ratios examine the capability of an organization to pay those creditors, whose debts are below the stipulated period of twelve months.   Such short-term debts usually consist of 30 or 60 days credit period.   Indeed under the two ratios the Current Liabilities are considered as the debt to be covered by the assets considered on the numerator of the ratio. The higher these ratios, the better are the financial position of the firm.   However, a number of factors have to be considered by both ratios before remarking on the financial position of the company.   For instance, one has to consider the nature of the business and the effect of seasonal variations before giving drastic conclusions.   In fact, such ratios are frequently examined by analyzing the financial position of the same organization over time or in relation to the industry average in which the firm operates. The main difference that lies between these ratios is the analyses of the liquidity of the current assets taken.   Under the current ratio, all the current assets of the firm are considered in the formula.   However, the acid-test ratio examines the assets that can be easily converted into cash in relation to the current liabilities of the firm.   As a result, the stock value, which is the least liquid asset, is deducted from the current assets in this ratio. Under these ratios, the short-term assets are divided by the current liabilities in order to see by how many times can such assets cover these liabilities.   For instance, if at the financial year ended 31st December 2006 a firm had a total current assets of $200,000, and the current liabilities added up to $100,000, the current ratio would be calculated as follows: This result indicates that the current assets of the firm can meet by two times as much the present current obligations of the organization.   The same principle applies for the acid-test ratio with the exception that stock is removed from the current assets as already stated in the previous paragraph.

India's global success in the film industry Essay

India's global success in the film industry - Essay Example Cinema is a major industry in India. A film industry uses many technological and commercial institutions of film making. A Cinema or a film industry depicts the culture and the art of a country in the movie that it usually make, the Indian film industry is famous for its distinguished melodrama style of film making. The Indian film industry is multi lingual. The main language used in the films of India is either Hindi or Urdu, besides these languages there are other languages such as Punjabi, Marathi, Bengali, etc that are used to present film and they target their respective language speakers. The Indian film industry in famously known as †Bollywood†, this name is an amalgamation of Bombay (the previous name used for the Indian city of Mumbai) and the ever popular Hollywood (a neighborhood in Los Angeles, California where the American cinema exists). (Bollywood History) Cinema made its first step into the Indian subcontinent in the year 1896 when Lumiere Brothers cinematograph film was screened in the city of Bombay on 7th July, 1986. This day, the concept of cinema was introduced in the Indian subcontinent but the initial silent film â€Å"Raja Harishchandra† (made by Indians totally) was released in 1913 to mark the start of the great Indian cinema. With this film, a trend of mythological and religious films took over the concept of film making in the Indian film Industry and this was further revolutionized in 1931 with the inception of sound in the first talking Indian film â€Å"Alam Ara†. The period after India’s independence was considered to be the golden era of the Indian film industry with respect to the songs, movies, etc made in the Indian film industry, by the 1970s and the 80s era, the Indian film industry had reached a great height and global recognition. In 1992, this global recognition was further enhanced in 19 92 when Satyajit Ray, an Indian filmmaker received a life time achievement Oscar for his excellent work and the

Economic Advantages of Free Trade Essay Example | Topics and Well Written Essays - 1250 words

Economic Advantages of Free Trade - Essay Example This essay presents a brief informative theoretic overview of the positive economic effects, that free trade agreements exert on economic performance of a country. When country trades with another state, it either exports products to that country or it imports, procures products and services from that particular nation. When a country exports different goods and commodities to other member states, it can be seen that it stands better chances of generating revenue from that particular activity. Exports boost the wealth of the nation and imports also contribute to the welfare of the country. When a country sells certain goods to other countries, it generates revenue in the form of foreign currency and this money can be channelled into the economy and it can help it to develop. Precious commodities such as gold and other minerals are exported to other countries and they bring a lot of forex to the host country. Other industries such as textile also export different goods to other countries and these exports help to generate revenue for the host country. The money is used for other developmental purposes and it helps the host nation to improve its economy. With a thriving export market in a country, it can be seen that employment is also likely to be created as a result of the growing demand of the products that are locally produced and sold to other countries. This means that more money is injected in the economy and it can also be used for developing other social amenities such as health, education as well as infrastructure. The roads in a particular country are likely to be developed and buildings are also likely to be constructed as a result of free trade between member states that will help each other to gain the desired objectives in as far as economic growth and development are concerned. The other advantage of free trade among member states is that they can easily