Asked by
Carina Angel
on Nov 08, 2024Verified
Liquid assets:
A) Are defined as current assets minus current liabilities.
B) Are defined as inventory and equipment.
C) Tend to earn a low rate of return.
D) Include any asset which can be sold within two years.
E) Is another term for current assets.
Liquid Assets
Assets that can be quickly converted into cash with minimal loss of value.
Rate of Return
The beneficial or detrimental shift in an investment's monetary value across a set timeline, expressed in terms of a percentage of the investment's primary investment.
Current Assets
Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.
- Identify the role and importance of liquidity and liquid assets in a firm.
Verified Answer
AD
Learning Objectives
- Identify the role and importance of liquidity and liquid assets in a firm.