Which of the Following Would Increase Your Liquid Assets

question 100

Multiple Choice

Which of the following would increase your liquid assets?

• A) Buying a new car
• B) Making regular deposits to a savings account at your bank
• C) Buying rental property
• D) Putting more of your salary into a retirement account

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Definitions:

Contribution Margin

The difference between a company's sales revenue and its variable costs, serving as a measure of the profitability of individual products.

Monthly Unit Sales

The total number of units of a product sold by a company in a given month, often used to track sales trends and forecast demand.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Fixed Costs

Costs that remain constant regardless of the amount of production or sales, including rent, salaries, and insurance fees.