g Which one of the following statements concerning liquidity is correct? Multiple Choice If you can sell an asset next year at a price equal to its actual value, the asset is highly liquid. The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties. Balance sheet accounts are listed in order of decreasing liquidity. Liquid assets generally earn higher rates of return than fixed assets. Liquid assets are defined as those assets obtained within the past year.

Respuesta :

Answer: Balance sheet accounts are listed in order of decreasing liquidity.

Explanation: Liquidity refers to an ability of an asset in which the owner can sell that asset quickly without a drastic change in its value.

In balance sheet the assets are shown in order of decreasing liquidity. It is done for the purpose that the investor can get an idea of how much proportion of the asset is fixed and how much is current.

This helps the investor in assessing how much they can get repaid in case company gets liquidate.

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