Identify the Basis on Which You Measure the Liquidity of an Asset

question 115

Multiple Choice

Identify the basis on which you measure the liquidity of an asset.

• A)Its value.
• B)Its future earning potential.
• C)Its convertibility into cash.
• D)Its ability to act as a perfect store of value.

---

Definitions:

Judgment

A formal decision or conclusion by a court or judge.

U.S. Supreme Court

The highest court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional or federal law.

Court of Last Resort

The highest court in a jurisdiction from which there is no appeal, often referred to as a supreme court.

State Law

Regulations and statutes enacted by the legislative bodies of individual states, different from federal laws.