Question: Fixed assets are more liquid than current assets. The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties. Balance

Fixed assets are more liquid than current assets.
The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties.
Balance sheet accounts are listed in order of decreasing liquidity.
Liquid assets tend to have market values far in excess of their book values.
Trademarks and patents are highly liquid.

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