Which of the following is the measure of how quickly an item can be converted to cash?
A)Debt ratio
B)Current ratio
C)Liquidity
D)Accounting cycle

Question

Quizplus · Accepted Answer

Liquidity is the measure of how quickly an item can be converted to cash. Debt ratio (A) measures the amount of debt compared to assets, while current ratio (B) measures the ability to pay current debts with current assets. Accounting cycle (D) is the process of recording and reporting financial transactions.

Which of the Following Is the Measure of How Quickly