Liquidity refers to the assets a company has that it can quickly and easily convert to cash without losing value, and profitability is a company's ability to make a profit. Companies with high liquidity trade often and have a large number of liquid assets, those things that can be bought and sold quickly, as needed.
A company or corporation uses a profitability ratio to determine how profitable it is. The money a company has left after deducting all expenses like income and operating costs is its profitability. Liquidity, also known as "marketability," is different because it has nothing to do with a company's ability to make a profit. It simply provides the organization with a way to get cash quickly, without losing anything. Liquid assets can be stocks, government bonds or money market accounts.Learn More
A cashier's check can be cashed at a bank just like a regular check, according to First Columbia Bank & Trust Co. Because of scams, many banks now require a cashier's check to clear from the originating institution before making the funds available.Full Answer >
The purpose of the income statement is to show the profitability of a company during a specific period, says accountant Harold Averkamp. Investors use this statement, along with other financial statements, to determine if a business is a good investment.Full Answer >
There is not one set amount of money that every ATM holds at a given time. However, most ATMs have the capacity to hold up to $200,000 at one time. Most do not have this much in cash inside of the actual machine, with $10,000 being a more reasonable figure.Full Answer >
Cashing a money order is completed by depositing it in an existing bank account or using the direct issuer to cash the money order, according to My Bank Tracker. The process is similar to cashing a personal check, and valid identification is required. Wikipedia suggests using check cashing stores, convenience stores and grocery stores in the United States as additional options for cashing money orders.Full Answer >