What does liquidity mean here? - ProProfs Discuss
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What does liquidity mean here?

Assets are generally listed on a balance sheet in the order of their liquidity.

Asked by Mscuttle, Last updated: Nov 16, 2022

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3 Answers

tanya-lee.stephens19

tanya-lee.stephens

tanya-lee.stephens19
Tanya-lee.stephens

Answered Jun 19, 2020

The order in which the assets are converted into cash.

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E. Austin

E. Austin

E. Austin
E. Austin

Answered Apr 29, 2020

The order in which the assets are converted into cash. Liquidity is also known as market liquidity. It is another way of saying the word cash. It is an important aspect of businesses and investors.

When it comes to investments, liquidity is important because it allows for access to buyers to provide cash. An investment is liquid if it is in the form of cash. It could also be cash equivalents, such as a holding that is short term or a money market fund. The opposite is that liquid assets would be illiquid..

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John Smith

John Smith

John Smith
John Smith

Answered Apr 12, 2017

The order in which the assets are converted into cash
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