All categories

4 years ago

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

Business

1 answer:

denis23 [38]4 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.

You might be interested in

The following investment opportunities are available to an investment center manager: Project Initial Investment Annual Earnings

solong [7]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Projects:

Io= -$ 800,000

Perpetual cash= $ 90,000

Io= 100,000

Perpetual cash flow= 20,000

Io= 300,000

Perpetual CF= 25,000

Io= 400,000

Perpetual CF= 60,000

To find the present value of a perpetual annuity we need to use the following information:

PV= cash flow/i

A) i= 0.16

A= -800000 + (90000/0.16)= -237,500

B= -100000 + (20000/0.16)= 25,000

C= -300000 + (25000/0.16)= -143,750

D= -400000 + (60000/0.16)= -25000

Only project B is pursuable.

B) i=10%

A= 100,000

B= 100,000

C= -50,000

D= 200,000

Only project C is not pursuable. Project D has the greatest net present value.

C) With i=16% only project B should be pursued. With i=10%, project D is the best.

7 0

4 years ago

2. How does feature-benefit selling create selling points?

Wittaler [7]

Answer:

Feature-benefit selling is the process of connecting your the things your product helps your customer do (features) to the goals it will help them achieve and the pain points it will help them eliminate.

Explanation:

7 0

3 years ago

Dunstreet's department store would like to develop an inventory ordering policy of a 95 percent probability of not stocking out.

ArbitrLikvidat [17]

Answer:

219 sheets

Explanation:

D = 5000 per year,

d = daily demand = 5000/365 = 13.70 sheets

T = time between orders (review) = 14 days

L = Lead time = 10 days

σd= Standard deviation of daily demand = 5 per day

I = Current Inventory = 150 sheets Service Level

P = 95% (Probability of not stocking out) q=d(L+D)z σ T+L-1

σ T+L-1= square root (T+L)=5 square root 14+10= 24.495

From Standard normal distribution, z = 1.64 for 95% Service Level (or 5% Stock out)

q=13.70*(14+10)+1.64(24.495)-150

= 218.97 →219 sheets

5 0

3 years ago

Read 2 more answers

What is a caterer what is his job

Oksi-84 [34.3K]

A caterer is someone who arranges the delivery, preparation and presentation of food for clients. If you've ever attended a bridal shower, fund raiser, rehearsal dinner, wedding reception or a bar mitzvah that had beautifully prepared and presented food, chances are that event was catered.

6 0

3 years ago

Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured

Tamiku [17]

Answer:

Explanation:

Machining Department Finishing Department Estimated Manufacturing Overhead by Department $800,000 $200,000

Trail Running Shoes 360,000 machine hours 6,000 direct labor hours Running Apparel 40,000 machine hours 34,000 direct labor hours

Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department.

At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel:

Machining Department Finishing Department Trail Running Shoes 362,000 hours 5,500 hours

Running Apparel 37,000 hours 35,000 hours

How much manufacturing overhead will be allocated to running apparel?

For The Overhead Absorption Rate for Machining Department

Trail Running Shoes = (360,000/360,000+40,000)* $800,000 = $720,000

Running Apparel = (40,000/360,000+40,000)* $800,000 = $80,000

For The Overhead Absorption Rate for Finishing Department

Trail Running Shoes = (6,000/6,000+34,000)* $200,000 = $30,000

Running Apparel = (34,000/6,000+34,000)* $200,000 = $170,000

Therefore the running department would have been allocated ($80,000+$170,000) which is $250,000 during the period.

8 0

3 years ago