Accounting Liquidity Refers to the ease and quickness with which assets can be converted to cash-without a significant loss in value ■ Current assets are the most liquid. ■ Some fixed assets are intangible. The more liquid a firm's assets,the less likely the firm is to experience problems meeting short- term obligations. Liquid assets frequently have lower rates of return than fixed assets.7 Accounting Liquidity n Refers to the ease and quickness with which assets can be converted to cash—without a significant loss in value n Current assets are the most liquid. n Some fixed assets are intangible. n The more liquid a firm’s assets, the less likely the firm is to experience problems meeting short￾term obligations. n Liquid assets frequently have lower rates of return than fixed assets