Liquidity relates to a company's ability to sell its assets for amounts that exceed the assets' book values.

Name: Liquidity relates to a company's ability to sell its assets for amounts that exceed the assets' book values.
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Liquidity refers to a company's ability to convert its assets into cash quickly and easily without incurring significant losses. It does not necessarily relate to selling assets for amounts that exceed their book values.

Liquidity Relates to a Company's Ability to Sell Its Assets