Liquidity is:
A)having assets that can be readily converted into cash.
B)having liabilities that can be readily converted into cash.
C)sufficient assets to cover long-run liabilities.
D)sufficient liabilities to cover long-run assets.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which assets can be converted into cash without significant loss in value. Therefore, having assets that can be readily converted into cash is the correct definition of liquidity.

Liquidity Is