Which One of the Following Statements Concerning Liquidity Is Correct

question 273

Multiple Choice

Which one of the following statements concerning liquidity is correct?

• A) If you can sell an asset in 18 months, it is a liquid asset.
• B) If you can sell an asset next year at a price equal to its actual value, the asset is highly liquid.
• C) Trademarks and patents are highly liquid.
• D) The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties.
• E) Statement of financial position accounts are listed in order of decreasing liquidity.

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Definitions:

Haphazard

Lacking any obvious principle of organization; random or disorganized.

Developmental Stage

A distinct period in the life span characterized by particular patterns of behavior and cognitive abilities.

Cognitive Development

encompasses the evolution of cognitive processes and abilities, such as thinking, reasoning, and problem-solving, through various stages of childhood into adulthood.

Disorderly

Characterized by a lack of order or organization; chaotic or unruly behavior.