The Definition of Liquidity Is How

question 107

Multiple Choice

The definition of liquidity is how:

• A) easily an asset may be sold.
• B) long an asset can be used.
• C) easily an asset can be exchanged for another asset.
• D) short an operating cycle is.

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Definitions:

Administrative Department

A segment within an organization responsible for managing general operations and administrative tasks.

Profit Center

A segment or department within a business that is responsible for generating its own revenue and profits.

Revenue Center

A division or unit within an organization responsible for generating revenue through its operations and activities.

Gross Profit

The financial metric that represents the difference between revenue and the cost of goods sold before accounting for other expenses.