An Individual's Need for Liquidity Would Increase If

question 40

Multiple Choice

An individual's need for liquidity would increase if

• A) the average value of transactions carried out by the individual fell.
• B) the average value of transactions carried out by the individual rose.
• C) the individual got a raise.
• D) the individual received a new ATM card.
• E) the individual wanted to avoid risks.

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Definitions:

Not Amortised

Pertaining to certain assets or costs that are not gradually written off through amortization over their useful life, possibly because they have an indefinite life or a value that cannot be reliably measured over time.

Fair Values

An estimation of the market value of an asset or liability, based on current prices in an active market or through model-based techniques when no active market exists.

Journal Entry

A record of a business transaction in an accounting system that includes the accounts and amounts to be debited and credited.

Acquisition

The process of acquiring control of another company or business asset, which can involve a purchase, merger, or take-over.