DB 2 -What does the concept of liquidity refer to? HERE

Question

Question

Answer 1

Answer #1

Liquidity means :

The assets which are converted in to cash with in one year.current assets having more liquidity nature they are Easley conversated into cash.

More Liquidity Assets helps to company for thier short term obligations.

Liquid Assets are Current Assets, most liquid assets are cash, cash at bank and short term investment.

Liquidity concept helps in company working capital calculations.

Answer 2

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