Which of the Following Assets Is Most Liquid

question 206

Multiple Choice

Which of the following assets is most liquid?

• A)short-term government bonds 
• B)savings accounts 
• C)checking accounts 
• D)currency and coins

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Definitions:

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting.

Earnings Benchmarks

Standards or metrics against which a company's profitability can be measured.

Discretionary Spending

Expenditures made at the discretion of a business or individual, which are non-essential and can be adjusted or eliminated.

Accounting-Based Incentives

Compensation schemes for employees or executives that are tied to accounting performance measures, such as earnings or return on assets.