Which One of the Following Represents the Most Liquid Asset

question 53

Multiple Choice

Which one of the following represents the most liquid asset?

• A)$100 account receivable that is discounted and collected for $96 today
• B)$100 of inventory which is sold today on credit for $103
• C)$100 of inventory which is discounted and sold for $97 cash today
• D)$100 of inventory that is sold today for $100 cash
• E)$100 accounts receivable that will be collected in full next week

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Definitions:

Agency Theory

Addresses potential conflicts of interests among different groups of stakeholders in an organization. The name of the theory and some of its basic principles are derived from the fact that, in most modern organizations, the individuals who own a firm do not actually run it on a daily basis. Problems arise when the interests of the owners (the principals) are in conflict with the interests of the managers (agents).

HR Managers

Professionals responsible for overseeing the human resources department, implementing HRM practices, and ensuring effective use of employee talent and resources.

Conflicts of Interest

Situations where an individual's personal interests could potentially interfere with their professional duties or responsibilities.

Intrinsic Motivation

Is the motivation to do work because it is interesting, engaging, or possibly challenging rather than because someone is rewarding us to do the work.