Purposes of Managing Liquidity Include All of the Following Except

question 25

Multiple Choice

Purposes of managing liquidity include all of the following except

• A)determining how to keep the majority of your assets in liquid form.
• B)having enough liquid assets to cover cash shortage deficiencies.
• C)maintaining adequate liquidity to avoid borrowing every time you need money.
• D)maintaining just enough liquid assets to meet your needs.

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Definitions:

Stated Value

A value that is assigned to a share of stock by the company's board of directors, not based on market value, but used for accounting and reporting purposes.

Excess of Par

The amount by which a security's sale or issue price exceeds its par value.

Treasury Shares

Shares released to the public and afterward reclaimed by the issuer, cutting down the overall count of stock available on the open market.

Journalize

The process of recording transactions in an accounting journal.