LIQUIDITY Definition

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LIQUIDITY is a. a companys ability to meet current obligations with cash or other assets that can be quickly converted to cash; b. in securities, it is the ease with which an instrument can be bought or sold at or near prevailing market prices in the secondary market (often reflected by the range of the bid-asked spread).

Learn new Accounting Terms

PRIOR PERIOD refers to accounting periods that have occurred in the past. See also ACCOUNTING PERIOD.

PREPAYMENT is the payment of all or part of a debt prior to its due date.

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