What Makes the NFP Special?

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What Makes the NFP Special?

The net financial position (NFP) of a business entity shows the difference between the net current assets and the corresponding current liabilities for a given accounting period. The NFP is special and is not to be confused with the definition of profit and loss because NFP is expressly interested in the liquidity of the company. A simpler way of defining NFP is the difference between an entity’s cash position and the net debt.

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