Cash Itself or Items That Could Quickly Be Turned into Cash

question 12

Multiple Choice

Cash itself or items that could quickly be turned into cash or will be used within 1 year are called ________.

• A) Current assets
• B) Long-term assets
• C) Liquid assets
• D) Current liabilities
• E) Stuff

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Definitions:

Paid-in Capital

Funds received by a company from selling its stock directly to investors, not including any stock sales on the open market.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholders' meetings and receive dividends.

No-par Common Stock

Shares issued without a par value, allowing the company more flexibility in setting their price.

Paid-in Capital

The total amount of capital that shareholders have contributed to a company in exchange for shares of stock.