QUESTION IMAGE
Question
which of the following are relatively liquid?
financial ratios
long - term assets
current assets
Brief Explanations
In business (specifically finance/accounting), liquidity refers to how quickly an asset can be converted to cash. Current assets (e.g., cash, inventory, accounts receivable) are expected to be converted to cash within a year, so they are relatively liquid. Financial ratios are calculations (not assets), and long - term assets (e.g., property, plant, equipment) take longer to convert to cash, so they are less liquid.
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current assets