Which Asset Is the MOST Liquid

question 225

Multiple Choice

Which asset is the MOST liquid?

• A) currency
• B) chequing account balance
• C) stock in a publicly traded company
• D) a townhouse

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Definitions:

Credit Balance

A positive balance within an account, indicating that a company or individual has received more in deposits than it has spent.

Credit Sales

Sales made by a business that do not require immediate payment, but rather are paid for by the buyer at a later date.

Analysis of Receivables Method

A technique used in accounting to estimate the amount of receivables that will likely remain uncollectable.

Uncollectible Receivables

These are amounts due to a company from its customers that are considered unlikely to be collected.