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Florida Real Estate Exam

Category - Florida

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The liquidity of a business refers to the ratio between:

Fixed assets and fixed liabilities
Current assets and current liabilities
Total capital and total liabilities
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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Florida Real Estate Exam

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