According to the definition used in this book, a cash asset is
A)a short-term equity asset.
B)a short-term debt asset.
C)a risk-free asset.
D)Both B and C.

Question

Quizplus · Accepted Answer

A cash asset is a short-term debt asset because it represents money owed to a business that is expected to be paid back in the near future. It is not necessarily risk-free as it may be subject to default or inflation risk. According to the definition used in the book, a cash asset is a short-term debt asset, as it represents money owed to an entity and is expected to be paid back in the near future. While cash may be considered a risk-free asset in certain contexts, the definition used in the book specifies that it is a debt asset. Therefore, option A and C are incorrect, and option D is partially correct but not the best choice.

According to the Definition Used in This Book, a Cash