Which of the Following Is the Most Liquid Asset

question 27

Multiple Choice

Which of the following is the most liquid asset?

• A) Building
• B) Prepaid Expenses
• C) Accounts Receivable
• D) Cash

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Definitions:

Direct Labor Rate

The average cost paid per hour of direct labor, typically used in calculating the direct labor costs of producing goods or services.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to more accurately reflect the resources consumed.

Direct Labor-Hours

The total number of hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating labor costs to products.

Direct Materials Cost

The cost of raw materials used in manufacturing that can be directly traced to the finished product.