Q 7.24: companies that report inappropriate current assets as cash and cash equivalents may appear to be

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Business

Sherlyn

18 May, 00:43

Q 7.24: companies that report inappropriate current assets as cash and cash equivalents may appear to be

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Neveah Duffy · Answer 1

The answer to this question is more liquid.

In business, liquidity refers to how easy companies transform all assets that they held into cash-form.

If the company's report of inappropriate current assets revolves around cash and cash-equivalent, it will be very likely that they held a lot of cash as the majority of the asset to begin with,