The Dividing Line between the Liquidity and Gearing of an Entity

Abstract

In financial management the essential aim of both the liquidity and gearing of an entity is its ability to meet its financial obligations, although according to the interpretation of final accounts the liquidity of the company is separate performance from the gearing of the company. This focus of this paper is to establish the difference between the liquidity of the company and the gearing of the company and the title of the paper is “The dividing line between the liquidity and gearing of an Entity”. The information in article is entirely collected through secondary research due to the specialized nature of the study, specifically from scholarly articles accounting and finance, various text books in accounting and finance and journals from professional bodies.