Which One of the Following Statements Concerning Liquidity Is Correct

question 68

Multiple Choice

Which one of the following statements concerning liquidity is correct?

• A)If you sold an asset today, it is a liquid asset.
• B)Balance sheet accounts are listed in order of decreasing liquidity.
• C)If you can sell an asset next year at a price equal to its actual value, the asset is highly liquid.
• D)The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties.
• E)Trademarks and patents are highly liquid.

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Definitions:

Economic Rent

The extra income earned by a resource owner simply because of ownership, without contributing additional work or investment.

Major League Baseball

The professional baseball organization that is the oldest of the four major professional sports leagues in the United States and Canada.

Secondary Labor Market

Refers to segment of the labor market characterized by low pay, poor job security, and limited career prospects, often involving part-time or temporary work.

Primary Labor Market

Refers to sectors that offer high wages, good benefits, and stable employment, contrasting with the secondary labor market.