Which of the Following Accounts Is Considered More Liquid

- April 19, 2022

Any asset that can be sold within the next year is considered liquid. Cash on hand is the most liquid type of asset followed by funds you can withdraw from your bank accounts.

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These are any physical bills you have in your wallet.

. Which of the following is the most liquid asset. Inventory is more liquid than accounts receivable. For example the money in your checking account savings account or money market account is considered liquid because it can be withdrawn easily to settle liabilities.

Marketable securities net fixed assets accounts payable inventories 46. The least liquid of the following assets is. Currency checking account balancestravelers checks.

C Liquid assets are defined as assets that can be sold quickly regardless of the price obtained. Liquid assets are defined as assets that can be sold quickly regardless of the price obtained. D Inventory is more liquid than accounts receivable because inventory is tangible.

Checking or savings accounts. No conversion is necessaryif your business needs a cash infusion you can access your funds right away. No cash cash equivalents is the most liquid account.

B Liquid assets are valuable to a firm. ALiquid assets tend to earn a high rate of return. The same can usually be said of inventory on hand that can be reasonably.

A checking account balance. Accounts receivable are more liquid than cash. A checking account balance.

Some examples of assets that would be considered liquid include the following. Answer D is correct. Liquid assets tend to earn a high rate of return.

Marketable securities accounts payable accounts receivable inventories. If you can sell an asset within the next twelve months then it is considered highly liquid. A Liquid assets tend to earn a high rate of return.

If you can sell an asset today it is a liquid asset. Revised 20 Stopping payment on a check. Notes receivable usually have longer collection terms than accounts receivable.

See answer 1 Best Answer. You can pay for things directly with a. CLiquid assets are defined as assets that can be sold quickly regardless of the price obtained.

EAny asset that can be sold within the next year is considered liquid. BLiquid assets are valuable to a firm. Liquid assets are valuable to a firm.

Which of the following assets is normally considered the most liquid. A share of corporate stock. This is any and all cash available in your bank accounts.

A certificate of deposit. Negotiable Order of Withdrawal NOW Account is an interest-earning bank account. NOW Accounts served as an interest-bearing option for liquid funds.

You can use it to pay for a good or service immediately and also use it to settle any outstanding debts. There are many sources of accessible flexible capital. An asset must be sellable quickly at full value to be considered liquid.

DInventory is more liquid than accounts receivable because inventory is tangible. Checking accounts are the closest to cash in terms of liquidity. Assets presented on the balance sheet are listed in descending order of liquidity which allows users of financial statements to identify the assets that will be available first to meet current.

Liquidity is how quickly an asset can be converted to cash. Which of the following assets is likely to be considered the most liquid. Liquid assets are assets that can be quickly converted to cash and can include stocks bonds and CDs.

Certain account types are more liquid than others. This includes any money in mobile payment service accounts like Venmo or PayPal. But to answer that simply assets are considered as entitys resources so it is recorded in the balance sheet statement with the title ASSETS and it is broken down into account titles that make.

Cash is usually held in checking accounts savings accounts or money market accounts. 19 Which of the following should not be considered when evaluating a checking account. Inventory is more liquid than accounts receivable because inventory is tangible.

Discover more about the NOW Account here. Accounts receivable are typically considered to be liquid assets as they are expected to be collected within one year. Cash is your most liquid asset because you dont need to take further steps to convert it its already cash.

But there are varying levels of liquidity to know about. A Whether overdraft protection available and the cost B The cost of a stop payment order C The fees charged monthly D Whether the account is insured for more than 250000 Answer. A liquid asset is cash on hand or an asset that can be readily converted to cash.

200 points Which of the following items should not be included in a listing of current assets. E Any asset that can be sold is considered liquid.

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