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Horngren'S Financial And Managerial Accounting
Found in: Page 216

Short Answer

What does liquidity mean?

Answer

Liquidity refers to the measure which indicates how quickly the item can be converted into cash.

See the step by step solution

Step by Step Solution

Step 1: Explanation on Classified balance sheet

Classified balance sheet is type of balance sheet which places the assets and liabilities as per the specific category.

Step 2: Explanation on Liquid Assets

Liquid assets refers to the assets which can be realized into cash quickly. Cash is considered as highly liquid assets.

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