Which of the Following Is the Most Liquid Asset

question 52

Multiple Choice

Which of the following is the most liquid asset?

• A) A classic art painting
• B) A commercial building
• C) A savings bond
• D) A checking account balance
• E) Gold

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Definitions:

Section 1245

A tax code provision defining the treatment of gains from the sale of depreciable personal property, requiring that such gains be treated as ordinary income to the extent of depreciation taken.

Section 1231 Gain

The profit from the sale or exchange of real or depreciable property used in a business and held longer than one year.

Preferential Rates

Special, often lower, tax rates applied to certain types of income, such as capital gains or dividends, as an incentive or benefit.

Gross Assets

The total value of all assets owned by a company, individual, or entity before subtracting any liabilities.