Of the Items in the Following Lists, Which Go from Most

question 342

Multiple Choice

Of the items in the following lists, which go from most liquid to least liquid?

• A)a checking account, a house, a six-month certificate of deposit, shares of stock
• B)a six-month certificate of deposit, shares of stock, a house, a checking account
• C)a checking account, a certificate of deposit, shares of stock, a house
• D) a house, a six-month certificate of deposit, shares of stock, a checking account

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Definitions:

Fixed Costs

are expenses that do not change in response to the level of goods or services produced by a business, like rent or salaries.

Variable Costs

Expenses that change in proportion to the production or sales figures.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and labor expenses.

Total Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.