_________ refers to how quickly an asset can be converted into cash.
Most recent merchandise purchased by the frm. c. Actual units customers purchased. d. Merchandise the Frm acquired at the lowest cost. 48. _________ refers to how quickly an asset can be converted into cash. Select one: a. liquidity b. velocity c. fundability d. accessibility. What is a 'Liquid Asset'. A liquid asset is an asset that can be converted into cash quickly, with minimal impact to the price received in the open market. Liquid assets include money market instruments and government bonds. Listing assets in order of liquidity on your balance sheet gives you a picture of which assets you can quickly convert to cash. If you need money now, cash in hand, your checking account, and your savings account are at the top of the list. Depreciation is a systematic write-of oF the cost oF a tangible asset that is listed on___________. Select one: a. The Statement oF Cash ±lows b. Balance sheet c. Income Statement d. Statement oF retained earnings 37. Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). The balance sheet of a firm records the monetary value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business. One can classify assets into two major asset classes: tangible assets and intangible assets. Received cash on account 300 which part of assets increase? The answer is in your question actually. If you received cash on account the asset of CASH will increase, while the asset of Account Receivable will decrease. Since you receiv…ed cash it is assumed that they paid you cash on a balance that they owed you, so the journal entry would be a debit to cash (increase) and a credit to accounts receivable (decrease) Separate all of the Frm's transactions into meaningful categories. b. Prepare the frm's fnancial statements. c. Summarize the frm's fnancial data. d. Interpret and report data to the frm's management. 41. The most liquid asset is: Select one: a. sales b. cash c. account receivable d. owners' equity 42. BREAKING DOWN 'Liquidity'. Cash is considered the standard for liquidity because it can most quickly and easily be converted into other assets. If a person wants a $1,000 refrigerator, cash is the asset that can most easily be used to obtain it. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. Market liquidity refers to the extent to which a market, such as a country's stock market or a city's real estate market, allows assets to be bought and sold at stable prices. In investing, liquidity refers to how quickly you can convert a particular asset into cash. If you know the liquidity of your assets, including investments, you have some options when you need cash. All too often, people are short on cash and have too much wealth tied up in illiquid investments such as real estate.
Liquidity