The Ability of an Asset to Be Quickly Turned into Cash

question 37

Multiple Choice

The ability of an asset to be quickly turned into cash

• A) Disposal
• B) Liquidity
• C) Accrual
• D) Profitability

---

Definitions:

Bargain Purchase

Occurs when a company acquires an asset at a price significantly below its fair market value.

Subsidiary

A company that is completely or partly owned and partly or entirely controlled by another company, known as the parent company.

Assets

Resources controlled by a business from which future economic benefits are expected to flow to the business.