[ L ]

 

Liability

 

o         A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

 

 

Liquidity

 

o         The availability of cash in the near future after taking account of financial commitments over this period.

 

 

Losses

 

o         Decreases in economic benefits and as such they are no different in nature from other expenses.

 

 

 

Last in first out (LIFO)

 

o         a basis for costing the material content of a job on the basis that the newest stocks are used first.

 

 

Leverage

 

o         refer to gearing

 

 

 

Liabilities

 

o         amounts that a business owes to shareholders and outsiders. These may include debts of either a short-term or long-term nature.

 

 

Limited liability company

 

o         a company limited by shares or guarantee is one where members are responsible only to the extent of their share capital or guarantee in the event of liquidation.

 

 

Liquid assets

 

o         current assets minus stocks, being the least-liquid current asset

 

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