Which of these is the term for the ease of conversion of an asset into cash at a fair value?
A)liquidity
B)fair Market Value (FMV)
C)book Value
D)current Asset

Question

Quizplus · Accepted Answer

Liquidity is the term used for how easily an asset can be converted into cash at a fair market value without affecting its market price. It is an important aspect of financial management for a company as it represents the ability of a business to pay its short-term obligations. Fair Market Value (FMV) refers to the price that an asset would fetch in the market, while book value is the value of an asset as it appears in a company's accounting records. Current assets are assets that are expected to be converted to cash within one year.

Which of These Is the Term for the Ease of Conversion