Which of the Following Is CORRECT Regarding Liquidity

question 11

Multiple Choice

Which of the following is CORRECT regarding liquidity?

• A)Liquidity measures how quickly revenue can be earned.
• B)Accounts receivable is not a liquid asset.
• C)A balance sheet lists assets and liabilities in the order of relative liquidity.
• D)Equipment is a highly liquid asset.

Understand the concept of intellectual capital and its significance to organizational success.

Recognize the open systems perspective and its importance in organizational adaptation and effectiveness.

Identify high-performance work practices and their impact on leveraging human capital.

Comprehend the importance of organizational behavior theories and their application in predicting or influencing organizational events.

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Definitions:

Double-declining-balance Method

A depreciation approach that speeds up the process by using a rate twice that of the typical straight-line method.

Sales Price

The amount of money charged for a product or service, or the sum a customer pays to purchase something.

Salvage Value

The presumed value for resale of an asset at life’s operational end.

Depreciation

The methodical reduction of the recorded cost of a fixed asset to allocate its expense over its useful life.