Question

Which of the following could be true if one decreases their long term liability and increases their liquid assets?

Answer 1

Answer:

C on edgenuity

Explanation:

Answer 2

There are two of these that could be true. In order to decrease long term liability you have to pay off a debt you owe, and in order to increase your liquid assets you have to acquire more cash or anything that could be easily transferred into cash. If you pay off your credit card balance you are paying off your long term liability, and if you add money to savings you are increasing your liquid assets. At the same time if you pay down your mortgage you are decreasing your long term liability, and if you receive a cash prize you are increasing your liquid assets.