Liquidity Is Defined as

question 260

Multiple Choice

Liquidity is defined as

• A)the ease with which a given asset can be converted to a store of value.
• B)the ease with which a given asset can be converted to a unit of account.
• C)the ease with which a given asset can be converted to a medium of exchange.
• D)the ease with which a given asset can be converted to a standard of deferred payment.

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Definitions:

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of taxes and interest.

Mark-up

The amount added to the cost price of goods to cover overhead and profit; typically expressed as a percentage of the cost.

Unit Cost

Unit cost is the total expense incurred to produce, store, and sell one unit of a product or service, including both fixed and variable costs.

Operating Profit

Income from business operations after operating expenses are subtracted from gross profits, but before taxes and interest expenses.