Due to a downturn in the local economy, Bob is concerned about converting his assets to cash quickly. In accounting terms, he is apprehensive about
A) current assets.
B) liquidity.
C) turnover.
D) net income.
E) marketable securities.

Question

Quizplus · Accepted Answer

Liquidity refers to the ability of an asset to be converted to cash quickly without affecting its market value. In this situation, Bob needs to convert his assets to cash quickly due to the downturn in the local economy which shows he is concerned about liquidity.

Due to a Downturn in the Local Economy, Bob Is