Question

what do mean by the liquidity of an asset?​

Answer 1

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• Aɴ ᴀꜱꜱᴇᴛ ɪꜱ ꜱᴀɪᴅ ᴛᴏ ʙᴇ ʟɪQᴜɪᴅ ɪꜰ ɪᴛ ɪꜱ ᴇᴀꜱʏ ᴛᴏ ꜱᴇʟʟ ᴏʀ ᴄᴏɴᴠᴇʀᴛ ɪɴᴛᴏ ᴄᴀꜱʜ ᴡɪᴛʜᴏᴜᴛ ᴀɴʏ ʟᴏꜱꜱ ɪɴ ɪᴛꜱ ᴠᴀʟᴜᴇ. ʙʏ ᴅᴇꜰɪɴɪᴛɪᴏɴ, ʙᴀɴᴋ ɴᴏᴛᴇꜱ ᴀɴᴅ ᴄʜᴇᴄᴋɪɴɢ ᴀᴄᴄᴏᴜɴᴛꜱ ᴀʀᴇ ᴛʜᴇ ᴍᴏꜱᴛ ʟɪQᴜɪᴅ ᴀꜱꜱᴇᴛꜱ. ᴅᴇꜱᴄʀɪᴘᴛɪᴏɴ: ᴀ ʟɪQᴜɪᴅ ᴀꜱꜱᴇᴛ ᴀʟʟᴏᴡꜱ ᴀɴʏ ɪɴᴅɪᴠɪᴅᴜᴀʟ ᴏʀ ᴀ ᴄᴏᴍᴘᴀɴʏ ᴛᴏ ᴀᴄᴄᴇꜱꜱ ᴄᴀꜱʜ ᴀᴛ ᴀɴʏ ᴛɪᴍᴇ ᴛʜᴇʏ ᴡᴀɴᴛ.

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Answer 2

Explanation:

An asset is said to be liquid if it is easy to sell or convert into cash without any loss in its value. By definition, bank notes and checking accounts are the most liquid assets. Description: A liquid asset allows any individual or a company to access cash at any time they want.