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tino4ka555 [31]
3 years ago
8

What is meant by liquidity?

Business
1 answer:
BartSMP [9]3 years ago
3 0

Answer:

Liquidity is the term which is stated as the degree to which the asset or the security of the company which can be quickly sold or bought in the market at the price which states its intrinsic value.

In general term, it is defined as ease of converting the asset or security into cash.

Explanation:

The most liquid asset is cash as it is universally accepted and considered to be the standard for liquidity because it is quickly and easily be convertible  into other assets., while the other tangible assets like collectibles, real estate are all relatively illiquid.

Liquidity is of different types:

1. Market liquidity - Which refers to the extent of market like stock market, real estate market.

2. Accounting liquidity - It evaluates the ease with which the company or individual could meet or fulfill the financial obligations with the liquid assets which are available to them.

The accounting liquidity is measured with following ratios - Cash ratio, Quick ratio and Current ratio.

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On January 1, 2021, the Blackstone Corporation purchased a tract of land (site number 11) with a building for $740,000. Addition
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Answer:

The answer is given below;

Explanation:

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Broker Commission                        50,000

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January-September 2022

Borrowing Costs 3,000,000*12%*9/12   270,000

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4 0
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Which sentence indicates that Roger's company, Fine Jewelry, follows a subscription business model? Roger's company, Fine Jewelr
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Its "Customers get a new piece of jewelry every three months.

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The first option, never tells what the customer gets in return.

 Sorry this answer is two weeks late. Happy Thanks Giving!

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Answer:

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8 0
3 years ago
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