Which One of the Following Statements Related to Liquidity Is

question 9

Multiple Choice

Which one of the following statements related to liquidity is correct?

• A)Liquid assets tend to earn a high rate of return.
• B)Liquid assets are valuable to a firm.
• C)Liquid assets are defined as assets that can be sold quickly regardless of the price obtained.
• D)Inventory is more liquid than accounts receivable because inventory is tangible.
• E)Any asset that can be sold within the next year is considered liquid.

---

Definitions:

Census Family

A unit defined by statistics agencies for the census, usually consisting of a household of related individuals, such as parents and their children.

Conjugal Family

A family unit consisting of a married couple and their children, emphasizing the relationship between the spouses.

Family of Procreation

Refers to the family unit created by an individual, together with their partner and children, distinct from the family of origin in which the individual was born or raised.

Sandwich Generation

Describes individuals typically in their thirties or forties who are responsible for bringing up their own children while also caring for their aging parents.