An Asset That Can Easily Be Exchanged for Goods and Services

question 104

Multiple Choice

An asset that can easily be exchanged for goods and services is called a(n)

• A) financial asset.
• B) liquid asset.
• C) illegitimate asset.
• D) barterlike asset.
• E) service.

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Definitions:

Net Income

The amount a company earns after deducting every cost, expense, and tax from its total income.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Market Price

The present rate at which a service or asset is being traded.

Net Income

The final amount of money a company makes after removing all operational costs, taxes, and additional expenses from the overall income.