Which One of the Following Inventory Items Is Most Likely

question 189

Multiple Choice

Which one of the following inventory items is most likely the most liquid?

• A) Raw sugar owned by a cereal manufacturer.
• B) Completed wheel assemblies for train locomotives.
• C) Metal cabinets for washing machines.
• D) Customized spice mix sitting in the inventory of a soup company.
• E) The completed shell of a new home.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity, such as issuing shares or taking loans.

Investing Activities

transactions involving the purchase and sale of long-term assets and other investments, not related to core business operations.

Net Worth

The difference between the total assets and total liabilities of an individual or company, indicating financial health.

Financing Activities

Transactions involving changes in equity and long-term liabilities, reflecting how a company raises capital and repays investors.