BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset. Cash in a bank account or credit union account can be accessed quickly and easily, via a bank transfer or an ATM withdrawal.

Detailed explanation-2: -A liquid asset is an asset that can easily be converted into cash within a short amount of time. Liquid assets generally tend to have liquid markets with high levels of demand and security. Businesses record liquid assets in the current assets portion of their balance sheet.

Detailed explanation-3: -Liquidity is a company’s ability to convert assets to cash or acquire cash-through a loan or money in the bank-to pay its short-term obligations or liabilities.

Detailed explanation-4: -Meaning explained. A liquidity asset is an asset that can be converted into cash very quickly and easily. Cash and account balances belong to this category, as do tradable securities (e.g. shares) and treasury bills.

Detailed explanation-5: -Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.