Liquidity Is

question 397

Multiple Choice

Liquidity is

• A) the same thing as a checking deposit.
• B) the net flow of gold into the U.S. Treasury.
• C) the property of an asset being instantly convertible into a means of payment with little loss in value.
• D) the degree of movement in an asset's interest rate.

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Definitions:

Net Method

An accounting method where sales and purchases are recorded at their net amounts after deducting any discounts, rather than recording the gross amount and then the discount separately.

Invoice Price

The original price listed by the manufacturer or a supplier on the invoice, before any discounts.