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Liquidity
A measure of a company's or individual's ability to meet short-term obligations, often associated with the ease of converting assets into cash.
Liabilities
Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of assets, provision of services, or other value.
Effective-Interest Method
An accounting technique used to amortize the discount or premium on bonds payable over the life of the bonds, more precisely matching interest expense with the accounting periods in which they are incurred.
Unamortized Bond Discount
The portion of a bond discount that has not yet been expensed to interest expense over the life of the bond.
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