Which of the Following Assets Is the Most Liquid

question 4

Multiple Choice

Which of the following assets is the most liquid?

• A) Stock
• B) Treasury bills
• C) Corporate bonds
• D) Cash

Understand how days' payable outstanding is calculated and interpreted.

Identify and understand lean manufacturing principles and their impact on transaction recording.

Learn the components of the total cycle time and how lean principles affect cycle efficiency.

Understand the concept of value streams within lean manufacturing.

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Definitions:

After-Sales Department

A division of a business that handles customer service, support, and warranty claims after the sale of a product.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed, instead of adjusting net income on an accrual basis.

Service Department

A division within a company that provides support services rather than producing goods, such as IT or human resources.

Information Technology

The use of computers and software to manage information, including processing, securing, and exchanging data.