Which of the Following Types of Assets Is Considered to Be

question 160

Multiple Choice

Which of the following types of assets is considered to be completely liquid?

• A) accounts receivable
• B) cash
• C) prepaid expenses
• D) marketable securities

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Definitions:

Target Margin

The desired profit margin that a company aims to achieve for a product or service, used as a benchmark for pricing and cost management strategies.

Target Cost

The desired cost of manufacturing a product, which is calculated to ensure profitability at a specific selling price.

Activity-based Management System

A system that uses activity-based costing information to improve business processes and resource allocation, enhancing operational efficiency.

Real Causes

The underlying reasons or factors that lead to a certain effect or condition, often distinguished from more visible or immediate causes.