Rank the Following Items in Terms of Most Liquid to Least

question 105

Multiple Choice

Rank the following items in terms of most liquid to least liquid.

• A) checkable deposits, cash, an office building your father owns
• B) cash, credit card, money market mutual funds, checkable deposits,
• C) cash, checkable deposits, savings deposits, an office building your father owns
• D) cash, Microsoft stock certificates you own, checkable deposits

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Definitions:

Subsidiary Ledger

A detailed ledger that provides a breakdown of information summarized in the general ledger, often for accounts like Accounts Receivable or Accounts Payable.

Sales Returns And Allowances

A reduction in sales revenue resulting from customers returning goods or receiving discounts for faulty or unsatisfactory products.

Sales Tax Payable

An account responsible for tracking the sales tax gathered from buyers, due to be paid to the authorities.

Accounts Receivable

Funds that customers owe to a business for goods or services already provided but not yet compensated for.