Identify Three Specific Measures That Indicate How Well Assets Are

question 152

Essay

Identify three specific measures that indicate how well assets are utilized. What are the formulas for each measure?

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Definitions:

Petty Cash Account

A small amount of cash on hand used for paying expenses too small to merit writing a check.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Money Market Accounts

Interest-bearing accounts offered by financial institutions, combining the benefits of both savings and checking accounts, typically with higher interest rates.

Commercial Paper

An unsecured, short-term debt instrument issued by companies to finance their operational expenses.