Which of These Assets Is Generally Considered to Be the Most

question 71

Multiple Choice

Which of these assets is generally considered to be the most liquid?

• A)buildings
• B)land
• C)finished goods inventory
• D)accounts receivable

---

Definitions:

Trade-in Allowance

The amount credited to a buyer by a seller for the property or goods being part-exchanged.

Accumulated Depreciation

The total depreciation for an asset that has been recorded up to a specific point in time, reflecting its decline in value.

Fair Market Value

The price at which an asset would exchange hands between a willing buyer and seller, both having reasonable knowledge of all necessary facts.

Income Tax Method

When plant assets are exchanged, tax law says the gain or loss must be absorbed into the cost of the new asset.