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Liquidity refers to the degree of readiness of conversion of an asset into cash. true or false

Liquidity refers to the degree of readiness of conversion of an asset into cash. true or false

7 Answers

Liquidity refers to the degree of readiness of conversion of an asset into cash. The statement is True. Liquidity is the term that refers the availability of liquid assets to a company or to a market. Market liquidity is the ability of the market to purchase or sale an asset without making a big change in the price of the asset.... Show More
 b. False Liquidity refers to the degree of readiness of conversion of an asset into common stock. Explanation:Liquidity refers to the ability to easily convert an asset into cash. It is the degree to which an asset can be quickly purchased or sold in the market at a price which reflects its intrinsic value. Cash is the most liquid asset. Some assets such as stocks and bonds are very liquid because they can be converted to cash within days.... Show More
The statement is True.Step-by-step explanation: Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash or is similar to cash itself because the asset can be sold with little impact on its value.Hence, the given statement is TRUE. (Liquidity refers to the degree of readiness of conversion of an asset into cash).... Show More
False.Liquidity does not refer to the degree of readiness of conversion of an asset into common stock. Instead, it refers to the degree of readiness of conversion of an asset into CASH.... Show More

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