Which term can be liquidated quickly?

Which term can be liquidated quickly?

• A. Assets
• B. Balance Sheet
• C. Equities
• D. FICA

Answer: (A)

Liquidity is about how quickly something can be turned into cash. The term that describes items you can convert to cash rapidly is assets. Assets encompass everything of value you can sell or dispose of to raise money, including cash itself and marketable instruments. The balance sheet is just a report listing these items, not something you liquidate. Equities are a type of asset (stocks) that can be sold quickly in many markets, but the broad category you’d liquidate to get cash is assets. FICA relates to taxes, not to assets or liquidation.

Liquidity is about how quickly something can be turned into cash. The term that describes items you can convert to cash rapidly is assets. Assets encompass everything of value you can sell or dispose of to raise money, including cash itself and marketable instruments. The balance sheet is just a report listing these items, not something you liquidate. Equities are a type of asset (stocks) that can be sold quickly in many markets, but the broad category you’d liquidate to get cash is assets. FICA relates to taxes, not to assets or liquidation.