Florida Real Estate Exam

Category - Florida

The liquidity of a business refers to the ratio between:

  1. Fixed assets and fixed liabilities
  2. Current assets and current liabilities
  3. Total capital and total liabilities
  4. Net income and gross income
Explanation
Answer B - Liquidity refers to the cash position of a business; it would be best described by deducting the current liabilities from the current assets. The difference would reflect the cash available immediately.

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