2) Current assets are expected to be converted to cash or consumed within one year or an operating cycle, whichever is longer. True False 3) Current liabilities are due within one year or an operating cycle, whichever is (20pts) shorter. True False 4) Liquidity describes the ability to generate sufficient short-term cash flows to pay obligations as they come due. True False 5) Solvency is the ability to repay liabilities in the long run. (20pts) True False