Financial Assets That Can Be Turned into Cash Are Best

question 20

Multiple Choice

Financial assets that can be turned into cash are best defined as:

• A)Real Estate.
• B)Current assets
• C)Marketable assets.
• D)Household assets.
• E)Other assets.

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Definitions:

Income Summary

An account in the ledger that is used to gather all temporary accounts during the closing process, to transfer their balances to permanent accounts.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.

Balance Sheet

A business statement that consolidates the assets, debts, and shareholder equity of a company at a certain point.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.