Current Assets May Be Listed in the Balance Sheet in the Order

question 47

Multiple Choice

Current assets may be listed in the balance sheet in the order of their liquidity. Liquidity is:

• A) another name for the operating cycle.
• B) a measure of how many buyers there are for the asset.
• C) whether the asset is secured over a liability.
• D) the average length of time it takes to convert an asset into cash.

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