Which one of the following statements concerning liquidity is correct?
A)If you sold an asset today,it is a liquid asset.
B)If you can sell an asset next year at a price equal to its actual value,the asset is highly liquid.
C)Trademarks and patents are highly liquid.
D)The less liquidity a firm has,the lower the probability the firm will encounter financial difficulties.
E)Statement of financial position accounts are listed in order of decreasing liquidity.

Question

Quizplus · Accepted Answer

Statement of financial position accounts are listed in order of decreasing liquidity, meaning the most liquid assets, like cash, are listed first, followed by less liquid assets.

Which One of the Following Statements Concerning Liquidity Is Correct