Which of the following measures how readily assets can be converted to cash relative to how soon liabilities will have to be paid in cash?
A)capital structure.
B)maturity structure.
C)solvency.
D)liquidity.

Question

Quizplus · Accepted Answer

Liquidity measures how easily an asset can be converted to cash, and how soon liabilities will have to be paid in cash. Capital structure refers to the mix of debt and equity financing used by a company. Maturity structure refers to the timing of when a company's liabilities will be due for payment. Solvency measures a company's ability to pay its debts in the long term.

Which of the Following Measures How Readily Assets Can Be