Which of the following describes the ease with which an asset can be converted into cash?
A) liquidity
B) profitability
C) solvency
D) convertibility

Question

Quizplus · Accepted Answer

Liquidity is the measure of how easily and quickly an asset can be converted into cash without significant loss in its value. Profitability is a measure of how profitable a company or asset is. Solvency is the ability of an entity to meet its long-term financial obligations. Convertibility refers to the ability of a currency or asset to be converted into another currency or asset.

Which of the Following Describes the Ease with Which an Asset