Quick Answer: Which Of The Following Assets Would Be Considered To Be The Least Liquid Quizlet?

Money is the least liquid asset.

Which of the following assets would be considered least liquid?

Land, real estate, or buildings are considered the least liquid assets because it could take weeks or months to sell them. Before investing in any asset, it’s important to keep in mind the asset’s liquidity levels since it could be difficult or take time to convert back into cash.

Which of the following assets is the least liquid quizlet?

A house is the least liquid since it takes a longer time to convert into‚Äč money, and there are larger transaction costs in selling a house compared to the other listed assets. You just studied 56 terms!

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Which of the following assets would be considered to be the most liquid assets?

Cash on hand is considered the most liquid type of liquid asset since it is cash itself. Cash is legal tender that an individual or company can use to make payments on liability obligations.

Which list is in order of most liquid to least liquid?

Question: The following assets are listed in order of most liquid to least liquid: accounts receivable, inventory, cash, marketable securities.

Which of the following assets is the most liquid quizlet?

Cash is the most liquid of all assets.

Which account is the least liquid?

Compared to other bank accounts, a CD is less liquid. When you sign up for a CD, you agree to leave your money with the bank for a set period of time, the CD term.

Which of the following is the most liquid asset group of answer choices?

Cash is the most liquid asset as it is already converted into cash which can be used to pay liabilities immediately.

Which of the following is the most liquid form of savings?

And cash is generally considered the most liquid asset. Cash in a bank account or credit union account can be accessed quickly and easily, via a bank transfer or an ATM withdrawal.

Which is the most liquid form of money quizlet?

The most liquid measure of money supply is; includes demand deposits, traveler’s checks, currency, and other checkable deposits.

Which asset in the following list is the most 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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Is Fd a liquid asset?

FDs are invested into until a specific maturity period. Liquid funds, however, invest in money market instruments having lower maturity period and thus they ensure liquidity. “The primary areas of difference between bank FDs and liquid funds are returns, safety, taxation, and liquidity.

What are examples of assets?

Common examples of personal assets include:

  • Cash and cash equivalents, certificates of deposit, checking, and savings accounts, money market accounts, physical cash, Treasury bills.
  • Property or land and any structure that is permanently attached to it.

What is the order of assets on a balance sheet?

Order of liquidity is the presentation of assets in the balance sheet in the order of the amount of time it would usually take to convert them into cash. Thus, cash is always presented first, followed by marketable securities, then accounts receivable, then inventory, and then fixed assets. Goodwill is listed last.

What is the order of liquidity?

Order of liquidity is how a company presents their assets in the order of how long it would take to convert them into cash. Most often, companies list these assets on their balance sheet financial reports to help their employees and investors understand how much immediate spending power the business has.

What is the order of current assets on a balance sheet?

Each of the current asset line items is positioned on the balance sheet based on its comparative ability to be converted into cash (called the order of liquidity). Thus, current assets are usually listed on the balance sheet in the following descending order:

  • Cash.
  • Marketable securities.
  • Accounts receivable.
  • Inventory.

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