Which of the Following Need Be TRUE for an Asset

question 38

Multiple Choice

Which of the following need be TRUE for an asset to be considered liquid?

• A)It pays regular dividends.
• B)It can be bought and sold at an organized stock market or bourse.
• C)It is offered for sale on both primary and secondary markets.
• D)It can be easily bought and sold and the selling price is very close to the buying price at a given point in time.
• E)Buyers and sellers are anonymous.

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Definitions:

FOB Destination

A shipping term indicating that the seller bears all costs and risks of loss until the goods are delivered to the buyer's specified location.

Ending Inventory

The total value of all inventory (goods available for sale) a company holds at the end of an accounting period.

Average Cost Methods

A cost-flow assumption for inventory valuation, where the cost of goods sold and ending inventory are calculated based on the average cost of all units available for sale.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.