**What is IOU: Understanding Informal Debt Acknowledgments**
The acronym IOU comes from the English "I Owe You" (I Owe You) and designates a casual acknowledgment of debt between two parties. Unlike formal financial instruments, this type of document does not have binding legal force and functions more as a memory record than a legally enforceable obligation. This means that the debtor is not technically obligated to fulfill the debt simply because they signed a piece of paper.
**Main Features of IOU**
An IOU can vary greatly in format and complexity. It can be as simple as a quick note on a n

## Key Indicators for Assessing Financial Strength: Understanding Liquidity Ratios
Liquidity ratios are essential tools in financial analysis, allowing investors and analysts to objectively understand whether an organization has sufficient resources to meet its short-term financial obligations. These indicators transcend mere numerical calculations; their correct interpretation provides a clear insight into the economic stability of any company.
## What does the liquidity ratio indicate in business practice?
A liquidity ratio indicating a liquidity ratio close to or above one signals that the