one- page summary of the article:
“Analyzing liquidity using the cash conversion cycle” Corey S....

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one- page summary of the article: 
“Analyzing liquidity using the cash conversion cycle” Corey S. Cagle, Sharon N. Campbell and Keith T. Jones – This article can be found in the Journal of Accountancy May 2013 issue.
You can find this article in the aicpa.org website.

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Analyzing liquidity using the cash conversion cycle 
It is very necessary to assess liquidity of the company because decline in liquidity increases the 
risk of bankruptcy. Liquidity is described by Financial Accounting Standard Board as showing 
an asset’s or liability’s nearness to cash. In loan agreements, there is a clause about maintenance 
of minimum liquidity that should be maintained by borrowers. The increasing importance of risk 
assessment within the companies, public accounting practitioners performing such engagements 
as well as internal auditors could also take advantage from trusted measures of liquidity in 
assisting management to better understand vulnerabilities.   
In assessment of company’s liquidity,

one- page summary of the article : “Analyzing liquidity using the cash conversion cycle” Corey S. Cagle, Sharon N. Campbell and Keith T. Jones – This article can be found in the Journal of Accountancy...

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