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Ability of an asset to be converted in to cash very quickly is classified as
Answer & Solution
Correct Answer:
Option
C
Ability of an asset to be converted in to cash very quickly is classified as liquidity. Financial liquidity refers to how easily assets can be converted into cash. Assets like stocks and bonds are very liquid since they can be converted to cash within days. However, large assets such as property, plant, and equipment are not as easily converted to cash.
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