Liquidity is:
A) A measure of the use of debt in a ﬁrm's capital structure.
B) Equal to current assets minus current liabilities.
C) Equal to the market value of a ﬁrm's total assets minus its current liabilities.
D) Valuable to a ﬁrm even though liquid assets tend to be less proﬁtable to own.
E) Generally associated with intangible assets.

Question

Quizplus · Accepted Answer

The Answer of Liquidity is:
A) A measure of the use of debt in a ﬁrm's capital structure.
B) Equal to current assets minus current liabilities.
C) Equal to the market value of a ﬁrm's total assets minus its current liabilities.
D) Valuable to a ﬁrm even though liquid assets tend to be less proﬁtable to own.
E) Generally associated with intangible assets.

Liquidity Is