Which of the Following Measures How Quickly an Investor Has

question 6

Multiple Choice

Which of the following measures how quickly an investor has access to his/her invested funds, if they are needed?

• A) risk
• B) tax consequences
• C) yield
• D) liquidity

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Definitions:

Ledger Accounts

Individual records within the general ledger that show the transactions and balances for each accounting period, relating to specific assets, liabilities, equity, revenues, and expenses.

Recording

The process of documenting financial transactions in the accounting records of a business.

Journal

A detailed record where all financial transactions of a business are initially recorded before summarizing them into ledgers.

Journalizing

The process of recording transactions in a journal or diary in chronological order before they are posted to ledgers.