Liquidity

• What is the definition of liquidity ?

  The ease with which assets can be converted into cash
• What is considered the most valuable asset

  Cash
• Where at the least liquid assets listed

  At the top of the balance sheet
• why do the liabilities on the balance sheet appear in Brackets

  They are negative values
• What are the two tools used to measure liquidity

  current ratio , acid test ratio

  the statement of financial position
• What might a business use liquidity for

  As a measure of how healthy the business is