ORDER OF LIQUIDITY Definition

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ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).

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GROSS PAY is employee salary prior to the application of taxes and other deductions.

CPR is Constant Payment Rate, used to estimate the average life of mortgage-backed securities based on historical payments.

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