Describe how easy it is to convert assets to cash


Liquidity (Corporate Finance )

Liquidity is the term used to describe how easy it is to convert assets to cash. The most liquid asset, and what everything else is compared to, is cash. This is because it can always be used easily and immediately. Certificates of deposit are slightly less liquid, because there is usually a penalty for converting them to cash before their maturity date. Savings bonds are also quite liquid, since they can be sold at a bank fairly easily.

In 250 words, discuss more regarding Liquidity that has not already been covered in the above.

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Accounting Basics: Describe how easy it is to convert assets to cash
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