Which of the Following Must Be True for an Asset

question 2

Multiple Choice

Which of the following must be true for an asset to be considered liquid?

• A) It can be bought and sold at an organised stock market or bourse.
• B) It is offered for sale on both primary and secondary markets.
• C) It can be easily bought and sold, and the selling price is very close to the buying price at a given point in time.
• D) It pays regular dividends.

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Definitions:

Receivables

All money claims against other entities, including people, business firms, and other organizations.

Written Off

The process of recognizing that a portion of a company's assets or receivables has decreased in value and is unlikely to be recovered, thus removing it from the balance sheet.

Account Receivable

A claim against the customer created by selling merchandise or services on credit.

Reinstated

Restoring something to its previous state or position, often used in the context of employment, insurance, or legal status.