What does a firm's liquidity measure? O A. Liquidity is a measure of an asset's neamess to cash-that is, how quickly the firm can convert the assets into cash and pay liabilities, with minimal risk of loss. Analyzing an entity's liquidity allows investors to determine whether the entity will have the resources needed to pay its obligations that will mature soon, as well as whether it will be able to pay dividends and/or buy back its own equity shares. Thus, the more liquid an entity, the lower the risk associated with that entity O B. Liquidity is a measure of expenses to revenues. When revenues are less than expenses, a firm is considered liquid. Analyzing an entity's liquidity allows investors to determine whether the entity will be profitable into the future. Thus, the more liquid an entity, the lower the risk associated with that entity. O C. Liquidity is a measure of revenues to expenses. When expenses are less than revenues, a firm is considered liquid. Analyzing an entity's liquidity allows investors t