Which of the Following Assets Is the Most Liquid

question 253

Multiple Choice

Which of the following assets is the most liquid?

• A) An office building
• B) An electric saw for sale by a hardware store
• C) A patent on a new kitchen appliance
• D) A manufacturing plant
• E) An amount receivable from a customer for a service provided

---

Definitions:

Profit Margin

A financial metric depicting the percentage of revenue that exceeds the costs of goods sold, showing the profitability of a business.

Net Sales

Company sales revenue post deduction of returns, allowances for imperfections or absences, and discounts.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time.

Plant Assets

Durable physical assets employed in the running of a business, designed for long-term use and not for being sold off.