In Finance, what is the term for how much cash or easily accessible money is available at a given time?

Question

BlackTom AI · Accepted Answer

The question asks for the term describing how much cash or easily accessible money is available at a given time, within a finance context.
Option 1: Financing. This term refers to the methods or sources of funds for a business or project, such as debt or equity financing, not the immediate availability of cash. It does not capture the concept of how liquid assets are at a moment.
Option 2: Expenses. Expenses are the costs incurred by a business in its operations. They reduce profitability and cash over time, but they are not a measure of how readily cash can be accessed at a given moment. Therefore this choice does not fit the definition.
Option 3: Liquidity. Liquidity precisely describes how quickly and easily assets can be converted into cash without significantly affecting their value. It directly answers the idea of how much cash or readily accessible money is available at a given time. This is the correct concept.
Option 4: Profitability. Profitability measures the ability of a business to generate profit relative to revenue, assets, or investment. It concerns earnings and margins, not the immediate availability of cash. Thus it does not describe cash accessibility.
In summary, among the given options, Liquidity is the term that matches the description of how much cash or easily accessible money is available at a given time, while the other terms refer to different financial concepts.

KSB-111-003.2025F Exam #2 - KSB 111 (Liederman)

In Finance, what is the term for how much cash or easily accessible money is available at a given time?

View Explanation

Log in for full answers

Similar Questions

Question18 Which of the following is considered the ultimate liquid asset? Select one alternative: a. Cash b. T-bills c. T-notes d. T-bonds e. Wholesale CDs ResetMaximum marks: 2 Flag question undefined

How would you describe Liquidity?

How would you describe Liquidity?

How would you describe Liquidity?

The ability of a business to meet its debts as they fall due is known as

The ability of a business to manage its assets and liabilities is known as

The ability of a business to meet its debts as they fall due is known as

The ability of a business to manage its assets and liabilities is known as

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler