How quickly an asset can be turned into cash is known as:
A) Liquidity
B) Liability
C) Net worth
D) Asset to Cash Ratio (ATC)

Question

Quizplus · Accepted Answer

Liquidity refers to how easily an asset can be converted to cash, making it a measure of how quickly assets can be accessed or sold in order to meet financial obligations. This is an important metric for businesses and individuals alike, as it can help determine their overall financial health and ability to cover expenses or pay off debts.

How Quickly an Asset Can Be Turned into Cash Is