Liquidity Refers To

question 94

Multiple Choice

Liquidity refers to:

• A) the ease at which an asset can be converted into money on short notice.
• B) the ability of an asset to hold its value over time.
• C) the purchasing power of a dollar over time.
• D) none of the above

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Definitions:

Voucher System

A control mechanism in accounting where vouchers are used to authorize the disbursement of cash and record financial transactions.