Which of the Following Is the Most Liquid Asset

question 82

Multiple Choice

Which of the following is the most liquid asset?

• A)corporate bonds.
• B)fine art.
• C)deposits that can be withdrawn using ATMs.
• D)mutual funds.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Cash Inflows

Refers to the money received by a business from its various sources, such as sales revenue, investment income, and financing.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

Incremental Net Operating Income

The difference in net operating income between two alternatives.