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3 years ago

Which of the following is the most liquid?

Business

1 answer:

BigorU [14]3 years ago

8 0

Answer:

Option(2) i.e " savings accounts at a local bank." is the correct answer to the given question .

Explanation:

Liquid asset are those asset that are rapidly translated into the cash money.The liquid asset is the connection cash in hand asset or perhaps the asset that can quickly be turned into the cash money.

We will withdraw the money many number of times it means in the option(2) the money is turned into the cash money. this is an example of the liquid asset .
All the other options are not turned into the cash money that's why it is not liquid asset .So these are incorrect option.

You might be interested in

Many commodities have futures markets associated with them. A futures market is a prediction market that aggregates information

arlik [135]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

Unleaded fuel prices are expected to fall by June 2019 according to future demand forecasts.

Since the future price is less than the spot price, it would be better for long-term buyers who can wait for the price to increase because the market is currently in BACKWARDATION. This happens due to a short-term disparity in demand and supply.

If the information in this sector is reliable and impartial, the expected June price will most likely be similar to the real price we will see in June.

It is reliable if the market is accurate and impartial, i.e. the market research on which knowledge flows.

The prices of goods are either integrated or expressed in such a flow of knowledge.

So, if it's unbiased and reliable, the forecast prices would be reasonably similar to the real future price.

5 0

3 years ago

Golddex Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment is

never [62]

Answer:

The correct answer is $263,200.

Explanation:

According to the scenario, the given data are as follows:

Salvage value =$220,000

Working capital = $60,000

Book value = $140,000

Tax rate = 21%

So, Gain on disposal = Salvage value - Book value

= $220,000 - $140,000 = $80,000

Now, Tax paid on gain on disposal value = Gain on disposal × tax rate

= $80,000 × 21% = $16,800

So, Salvage value after tax = Salvage value - Tax paid on gain on disposal value

= $220,000 - $16,800

= $203,200

So, we can calculate the terminal cash flow by using following formula:

Terminal cash flow = Salvage value after tax + Working value

= $203,200 + $60,000

= $263,200

7 0

3 years ago

A process cost system would be appropriate for a:

Lyrx [107]

Companies that produce a continuous mass of like units through series of operations or process

5 0

2 years ago

Mike's is a highway construction company. Mike's is laying a highway through the mountains in West Virginia. At one spot they ha

dexar [7]

Answer:

win based on strict liability

Explanation:

Strict liability is a liability that is imposed on party by the claimant that proves that an action occurred and the defendant is responsible for it.

This provision does not require the claimant to prove a fault by the defendant. It is mostly used when an action is considered dangerous.

In this scenario Mike was blasting some holes in rocks. This is a dangerous activity that can cause harm.

Myra who broke her legs in the explosion only needs to prove Mike was responsible for the explosion that occurred for her to win based on strict liability provision.

8 0

4 years ago

Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchai

Vadim26 [7]

Answer:

a. The preparation of schedule that shows the differential costs is shown below:-

b. Decision : Make

Explanation:

Particulars Make the Buy from Differential

Wheels trailblazers cost

Offer of

trailblazer $220,000 $220,000 Higher

(2,000 × $110)

Material cost $50,000 $50,000 Lower

($25 × 2,000)

Labor cost $106,000 $106,000 Lower

($53 × 2,000)

Variable

overhead $32,000 $32,000 Lower

($16 × 2,000)

Fixed

overhead $94,000 $54,000 $40,000 Lower

($47 × 2,000) ($94,000 - $40,000)

Total cost $282,000 $274,000 ($8,000) Lower

Working Note:-

1) Fixed overhead applied = $47 × 2,000 = $94000

Decision : Make

Total saving from accepting the accepting the offer of trailblazer = $8,000

Cost saving required to accept the offer of trailblazer = $10,000

Decision - Make (Since actual savings are less than savings required by $2,000)

5 0

3 years ago