what is the simple definition of liquidity and equity.

Question Posted / nisar ahmad

what is the simple definition of liquidity and equity...

Answer / 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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