The ease with which an asset can be converted into cash is termed
A)financial flexibility
B)liquidity
C)operating capability
D)capital maintenance

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash, making it an important factor in managing cash flow and financial stability. Financial flexibility and operating capability are related concepts, but do not specifically refer to the ease of converting assets into cash. Capital maintenance refers to the preservation of the value of an entity's assets over time.

The Ease with Which an Asset Can Be Converted into Cash