A Liquid Asset Is Most Appropriately Described as One That

question 41

Multiple Choice

A liquid asset is most appropriately described as one that is

• A)cash in a checking account.
• B)cash or any other asset that is easily converted to cash with no loss in market value.
• C)cash or any other asset that is marketable.
• D)cash and all other assets except those specifically designated as retirement assets.

---

Definitions:

Retains Earnings

Profits that a company keeps after dividends have been paid out to shareholders, often re-invested into the business for growth, paying off debt, or other purposes.

Investment Purposes

The intention behind allocating resources, often funds, into financial assets, real estate, or business ventures aiming to generate future returns.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, considered a key factor in determining the resources employed by a firm.

Rental Cost

The price paid for the temporary use of a good, service, or property owned by another entity.