Liquidity is:

A: a measure of the use of debt in a firm's capital structure.

B: equal to current assets minus current liabilities.

C: equal to the market value of a firm's total assets minus its total liabilities.

D: valuable to a firm even though liquid assets tend to be less profitable to own.

E: generally most associated with intangible assets.

Question

Alessandra Olson

Business

31 January, 13:25

Liquidity is:

A: a measure of the use of debt in a firm's capital structure.

B: equal to current assets minus current liabilities.

C: equal to the market value of a firm's total assets minus its total liabilities.

D: valuable to a firm even though liquid assets tend to be less profitable to own.

E: generally most associated with intangible assets.

+4

Answers (1)

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Slade · Answer 1

D valuable to a firm even though liquid assets tend to be less profitable to own is the correct answer.

Explanation:

Liquid assets come in handy in times o emergency although these have opportunity costs that interest earned.