Arrange the Following Assets in Decreasing Order of Liquidity, I

question 48

Multiple Choice

Arrange the following assets in decreasing order of liquidity, i.e., the most liquid should be listed first.
I.equipment and machinery;
II.inventories;
III.accounts receivable;
IV.marketable securities

• A)I, II, III, and IV
• B)II, III, IV, and I
• C)III, IV, II, and I
• D)IV, III, II, and I

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Definitions:

Gross Pay

The total amount of salary or wages earned by an employee before any deductions are taken for taxes, social security, etc.

Calendar Year

The one-year period that begins on January 1 and ends on December 31, used for most civil purposes and by many businesses as a fiscal year.

Work Week

A work week refers to the standard period of time during which an employee is expected to work, usually defined by the employer, and often consisting of 40 hours.

FICA-OASDI

Taxes collected under the Federal Insurance Contributions Act for Old Age, Survivors, and Disability Insurance, commonly known as Social Security.