Asked by Jasmine Agosto on Jun 19, 2024
Verified
Liquidity refers to how quickly an asset can be converted into cash.
Liquidity
The ability of an entity to quickly convert its assets into cash or to pay off its current liabilities.
- Familiarize oneself with the core concepts of liquidity and how transactions influence it.
Verified Answer
CM
Carlos MoranJun 21, 2024
Final Answer :
True
Explanation :
Liquidity refers to the ease with which an asset can be converted into cash without causing a significant change in its market value. It is an essential aspect of financial management and is often used to evaluate a company's financial health.
Learning Objectives
- Familiarize oneself with the core concepts of liquidity and how transactions influence it.