Which Is the Most Liquid Form of Assets

question 128

Multiple Choice

Which is the most liquid form of assets?

• A)Cash
• B)Accounts Receivable
• C)Inventory
• D)Supplies

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making it the simplest depreciation method.

After-Tax Discount

The reduction in price or value of an item after taxes have been factored into its cost.

Income Tax Rate

The percentage of income that is paid to the government as tax. It can vary depending on the income level and jurisdiction.

Straight-Line Depreciation

An approach to spreading out the expense associated with a long-term asset evenly over the period it is expected to be used.