Define: Liquidity

UK Accounting Glossary

Definition: Liquidity

Quick Summary of Liquidity

The extent to which a business has access to cash or items which can readily be exchanged for cash.

What is the dictionary definition of Liquidity?

Dictionary Definition

  1. finance The degree of which something is in high supply and demand, making it easily convertible to cash
  2. uncountable The state or property of being liquid.
  3. economics, countable An asset’s property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.


Full Definition of Liquidity


Liquidity FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Liquidity. Payroll & Accounting Heaven Ltd. November 20, 2019
Chicago Manual of Style (CMS):
Liquidity. Payroll & Accounting Heaven Ltd. (accessed: November 20, 2019).
American Psychological Association (APA):
Liquidity. Retrieved November 20, 2019, from website:

Definition Sources

Definitions for Liquidity are sourced/syndicated from:

This glossary post was last updated: 23rd December 2018.