Although Capital Asset Transaction do not directly related to the current year's profit of the organization,they do impact on the _______ of the organization over the period of time.
A) credit
B) liquidity
C) strategy
D) cash flow
E) wealth fluctuations

Question

Quizplus · Accepted Answer

Capital Asset Transactions involve the purchase or sale of long-term assets, such as property, plant, and equipment or securities. These transactions do not have an impact on the organization's current year profit but affect the organization's cash flow over a period of time, making it difficult to meet the short-term cash requirements. Hence, the liquidity of the organization is impacted, making option B) liquidity, the best choice to complete the sentence.

Although Capital Asset Transaction Do Not Directly Related to the Current