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3 years ago

Which of the following is an example of an illiquid asset?

Business

1 answer:

denis23 [38]3 years ago

5 0

Answer:

The correct answer would be B, Money in a checking account.

Explanation:

Liquid assets are one in the category of assets that are ready to be converted into cash. Cash held by a company is the considered the liquid asset of the company. Or any assets which can be converted into cash without losing so much of its value is called a liquid asset. For example if a company holds gold bars as one of the assets, then this would be considered as the liquid asset because gold can easily be converted into cash in case of need. Account Receivables, Gold, deposits receipts, securities, bonds, etc are considered to be the liquid assets of the company after Cash.

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It was a meat-eating dinosaur. It was about 30 feet long. It had

Ludmilka [50]

Answer:

T-rex

Explanation:

8 0

3 years ago

A marketing plan includes this marketing objective: "Create positive feelings about our brand." What is the main problem with th

Nesterboy [21]

c. It is not specific and measureable.

i hoped this helped

7 0

3 years ago

Read 2 more answers

Mrs. Beld sold marketable securities with a $79,600 tax basis to her daughter for $60,000 cash. Two years later, the daughter so

Ksenya-84 [330]

Answer:

$13,400

Explanation:

Data provided in the question:

Tax basis of marketable securities = $79,600

Amount for which securities sold to daughter = $60,000

Amount for which daughter sold the securities = $93,000

Now,

Mrs. Beld disallowed loss on the related party sale to her daughter

= Tax basis of marketable securities - Amount for which securities sold to daughter

= $79,600 - $60,000

= $19,600

Realized gain by her daughter = $93,000 - $60,000

= $33,000

Therefore,

The daughter's gain recognized on sale

= Realized gain by her daughter - Mrs. Beld disallowed loss

= $33,000 - $19,600

= $13,400

8 0

3 years ago

Indicate the effect of each of the following transactions on total assets, total liabilities, and total stockholdersâ equity. Se

Scorpion4ik [409]

Answer:

Transaction Assets Liabilities Stockholders' Equity

Issue common stock Increase NE Increase

Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease

Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE

Pay cash dividend Decrease Decrease NE

100% stock dividend NE NE NE

2-for-1 stock split NE NE NE

When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.

When cash dividends are declared, they become a liability that is owed to equity holders.

When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.

100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.

8 0

2 years ago

Perfect Clean, Inc. provides housekeeping services. The following financial data have been provided.

ioda

Answer:

A) $38,650; 48.31%

Explanation:

The computation of the contribution margin and the contribution margin ratio is shown below:

Contribution margin = Service Revenue - Cleaning Supplies Used - wages expense

= $80,000 - $22,000 - $19,350

= $38,650

The variable cost is Cleaning Supplies Used + wages expense

And, the contribution margin ratio equals to

= (Contribution margin ÷ sales) × 100

= ($38,650 ÷ $80,000) × 100

= 48.31%

7 0

3 years ago