What type of scenarios makes it difficult to turn an asset into cash?

ANSWER

The BIDaWIZ Team's Answer:

The liquidity of an asset determines how easily the asset

can be converted to cash. Long term assets, are the least liquid,

and current assets are the most liquid. For example, long term assets;

such as real estate, or other long term assets can not be easily

converted into cash, because you must obtain a buyer, and it takes

time to close the sale. Conversely, short term investments can be

easily converted to cash; often, without any type of liquidation cost.