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what is the simple definition of liquidity and equity.
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Answer Posted / ameet narayankhedkar
In accounting, we have 3 categories: Assets, Liabilities,
and Equity.
Equity is the difference between your Assets and your
liabilities.
Liquidity refers to how easy you can convert an asset into
cash.
EX:Houses would be illiquid and things like stocks are
probably more liquid
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