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Since It Does Not Have to Be Converted into Anything

question 67

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Since it does not have to be converted into anything else to make purchases,________ is the most liquid asset.


Definitions:

Inventory Costing

A method used to assign costs to inventory items and determine the cost of goods sold during a period.

Purchase Order

A document issued by a buyer to a seller, specifying the types of products, quantities, and agreed prices for products or services the seller will provide to the buyer.

Inventory

The total amount of goods and materials held by a company that are ready for sale or in the process of being produced.

Perpetual Inventory System

The inventory system in which each purchase and sale of merchandise is recorded in an inventory account.

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