Which One of the Following Represents the Most Liquid Asset

question 53

Multiple Choice

Which one of the following represents the most liquid asset?

• A)$100 account receivable that is discounted and collected for $96 today
• B)$100 of inventory which is sold today on credit for $103
• C)$100 of inventory which is discounted and sold for $97 cash today
• D)$100 of inventory that is sold today for $100 cash
• E)$100 accounts receivable that will be collected in full next week

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Definitions:

Enforceable

Capable of being compelled or ensured compliance, especially by legal or police action.

Wagered

The act of betting or staking something of value on the outcome of an event or a situation, often involving a degree of risk.

Stop Payment

An order given to a bank by an account holder not to pay a check or payment that has been issued but not yet processed.

Enforce

To compel observance or compliance, especially of laws, rules, or agreements.