The Most Liquid Asset Is

question 151

Multiple Choice

The most liquid asset is:

• A)Sales.
• B)Cash.
• C)Accounts payable.
• D)Owners' equity.

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Definitions:

EBIT

A financial performance metric that calculates a company's profits before accounting for interest and income tax costs, including all other expenses.

Asset Beta

A measure of the sensitivity of a particular asset's returns to the returns of the overall market, indicating its risk relative to the market.

Equity Beta

A measure of the volatility, or systematic risk, of an individual stock in comparison to the market as a whole.

Debt Beta

A measure of the risk associated with the debt portion of a company’s capital structure, compared to the market as a whole.