Your _____ Is an Example of a Liquid Asset

question 115

Multiple Choice

Your _____ is an example of a liquid asset.

• A) home
• B) car
• C) checking account
• D) charge account
• E) life insurance cash value

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Definitions:

Consolidated Income Statement

A consolidated income statement is a financial statement that aggregates the financial performance of a company and its subsidiaries.

Net Income

The amount of profit remaining in a company after all expenses, taxes, and costs have been subtracted from total revenue.

Accrual-Based Net Income

The net income of a company calculated based on accrual accounting, recognizing revenues when earned and expenses when incurred, regardless of cash flow.

IntrA-Entity Gains

Profits resulting from transactions within the same entity, often requiring elimination during the consolidation process to avoid inflating earnings.