Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

Related MCQs

• Determine Stock Turnover Ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.
• The objectives of Cash Flow Statement are (i) Analysis of cash position (ii) Short-term cash planning (iii) Evaluation of liquidity (iv) Comparison of operating Performance
• In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ________ while dividends and interest received should be stated as cash flow from ____.
• Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is
• The ratio which indicates how quickly debtors are converted into cash is---------
• ___________in accounting, is when the costs to acquire an asset are expensed over the life of that asset rather than in the period it was incurred?
• The ratio of liquid asset to current liabilities
• Fixed assets include premises Rs 10,00,000, Machinery Rs 5,00,000 Furniture Rs 2,00,000 Vehicles Rs 3,00,000 Live stock Rs 1,00,000 Goodwill Rs 2,00,000, Patents & Copy rights Rs 1,50,000, Underwriting commission Rs 50,000 Fixed tangible immovable asset will be :
• Which are not Investing activity? I)Receipts from sale of fixed asset II)Interest received III)Dividend paid IV)Cash Payment to acquire share of other Companies
• Opening stock + purchases + direct expenses – closing stock =