Which of the Following Is Correct Regarding Liquidity

question 94

Multiple Choice

Which of the following is correct regarding liquidity?

• A) Liquidity measures how quickly an item can be paid.
• B) Accounts receivable is the most liquid asset.
• C) A balance sheet lists assets and liabilities in the order of relative liquidity.
• D) Equipment is a highly liquid asset.

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Definitions:

Functional Resources

Assets or inputs that are practical and directly contribute to the production process or service delivery in organizations.

Internal Competition

Describes a situation within an organization where employees or departments compete against each other for recognition, promotion, or rewards, which can either be motivating or destructive.

Differentiation Strategy

A business approach where a company develops unique products or services to stand out from its competitors, targeting specific market niches.

Distinctive

Characterized by a unique feature, quality, or characteristic that sets it apart from others.