A(n)____ Asset Is One Which Can Be Quickly Converted into Cash

question 41

Multiple Choice

A(n) ____ asset is one which can be quickly converted into cash without significant loss in value.

• A)tangible
• B)fixed
• C)intangible
• D)liquid
• E)long-term

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Definitions:

Cost of Capital

The rate of return that a company must pay on its investment and financing activities to maintain its current market value.

Cash Inflows

Money received by a business or organization through its activities, such as sales revenue, investment income, or financing.

Profitability Index

A ratio that calculates the relative profitability of an investment by dividing the present value of future expected cash flows by the initial investment cost.

Initial Investment

The amount of money used to start a project, investment, or business.