The Most Liquid Asset Is

question 155

Multiple Choice

The most liquid asset is

• A) sales.
• B) accounts receivable.
• C) marketable securities.
• D) cash.
• E) capital.

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Definitions:

Initial Cost

The initial expenditure to acquire an asset or start a project, including purchase price, installation fees, and other upfront costs.

Double-Declining-Balance Method

A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.

Residual Value

The remaining value of an asset after accounting for depreciation and usage over time.

Depreciation

A systematic reduction in the recorded value of a fixed asset, recognizing wear and tear over time.