Liquidity is a measure of how ________.
A)quickly an asset may be converted into cash
B)long an asset can be used
C)easily an asset can be exchanged for another asset
D)short an operating cycle is

Question

Quizplus · Accepted Answer

Liquidity refers to how easily and quickly an asset can be converted into cash. A highly liquid asset can be sold or converted to cash quickly with minimal loss of value, making it easier to meet short-term financial obligations.

Liquidity Is a Measure of How ________