Question
Can you please help with this Which of the following is true regarding the liquidity of a firm. Liquidity is good for a firm because
Can you please help with this
Which of the following is true regarding the liquidity of a firm.
Liquidity is good for a firm because liquid assets can be turned into cash quickly without much loss in value. | ||
Liquidity for a firm is bad because the firm can then pay its bills easily, thereby avoiding financial distress. | ||
Liquidity is good for a firm because it would allow a firm to borrow money by using its most liquid assets, property, plant and equipment, as collateral. | ||
Assets are usually listed on a firm's balance sheet in order of liquidity. | ||
Liquid assets generally earn a large return, especially in comparison to illiquid assets. |
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