Ask Question
BusinessBusiness
9 April, 03:37

An asset with great liquidity is one that

A. generates high transactions costs when liquidating.

B. is an excellent store of value.

C. acts as a unit of account.

D. can be converted into a medium of exchange with relative ease and speed.

+2
Answers (1)
  1. 9 April, 04:00
    0
    D

    Explanation:

    Liquidity is an asset quality. It refers to the speed at which an asset can be sold or bought in a market. An asset is more liquid if it can be sold or bought at a quick speed, for intance, it does not generate high transaction costs. The most liquid asset example is cash. Eventhough, cash is a unit of account, there are other liquid assets that does not share this caracteristic such as shares.

    A great liquidity does not represent in all cases assets that are excellent store of value. There are iliquid assets such as houses that are good store of value.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An asset with great liquidity is one that A. generates high transactions costs when liquidating. B. is an excellent store of value. C. acts ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If hawkins manufacturing purchased $13,000 in metal, $6,000 in cloth, and $2,000 in cleaning supplies, the raw materials inventory would have
Answers (1)
A firm's marginal cost has a minimum value of $50, its average variable cost has a minimum value of $80, and its average total cost has a minimum value of $90. Then the firm will shut down if the price of its product falls below a. $90. b. $80. c.
Answers (1)
Task-oriented and people-oriented leadership is substituted by
Answers (1)
All of the following are reasons to use an estimated method of costing inventory except: A. perpetual inventory records are not maintained. B. purchase records are not maintained. C. a disaster has destroyed the inventory records and the inventory.
Answers (1)
Ruth Company produces 1,000 units of a necessary component with the following costs: Direct Materials $34,000 Direct Labor 15,000 Variable Overhead 9,000 Fixed Overhead 10,000 Ruth Company could avoid $6,000 in fixed overhead costs if it acquires
Answers (1)
New Questions in Business
Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while its cost of equity is 15 percent. What will be TapDance's WACC? (Round your answer to 2 decimal places.) WACC %.
Answers (1)
Which of the following choices is NOT a use for project plans in the workplace? A. event planning B. teacher lesson plans C. architectural blueprints D. memos about new corporate meeting times
Answers (1)
Maria is worried about the representativeness of her study. she is conducting interviews, but each one seems to last at least 3 hours. given that she has one month to collect her data, what strategy might she use to increase her sample size?
Answers (1)
What are some drawbacks and risks to a broad generic strategy? To a focused strategy?
Answers (1)
Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000.
Answers (1)
Home » Business » An asset with great liquidity is one that A. generates high transactions costs when liquidating. B. is an excellent store of value. C. acts as a unit of account. D. can be converted into a medium of exchange with relative ease and speed.
Sign Up Forgot Password?