Current Assets Listed in the Order of Liquidity Are

question 174

Multiple Choice

Current assets listed in the order of liquidity are:

• A)accounts receivable,inventory,cash and cash equivalents.
• B)cash and cash equivalents,accounts receivable,short-term investments,inventory.
• C)cash and cash equivalents,short-term investments,accounts receivable,inventory.
• D)marketable securities,cash and cash equivalents,accounts receivable,inventory.

---

Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of goods, easily identifiable and quantifiable.

Variable Costs

Costs that change in proportion to the level of production or sales activities of a business.

Cost Per Unit

Cost per unit is the total expense incurred to create or purchase a unit of product, calculated by dividing total costs by the number of units produced or purchased.

Fixed Factory Overhead

Costs related to the production that do not vary with the level of output, such as rent, salaries of permanent staff, and depreciation.