Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 29 - No. 46)
What does the term 'liquidity' refer to in accounting?
The ability of a company to pay its long-term debts.
The ability of a company to convert assets into cash quickly.
The total amount of assets a company has.
The total amount of liabilities a company has.
Explanation
Liquidity refers to a company's ability to convert assets into cash quickly.
Comments (0)
