Brad's Company has equipment with a book value of $500 that could be sold today at a 50% discount.Its inventory is valued at $400 and could be sold to a competitor for that amount.The firm has $50 in cash and customers owe it $300.What is the accounting value of its liquid assets?
A)$50
B)$350
C)$700
D)$750
E)$1,000

Question

Quizplus · Accepted Answer

The accounting value of liquid assets includes cash and accounts receivable. Cash is $50 and accounts receivable is $300, totaling $350. Inventory is also considered a liquid asset if it can be sold quickly, which in this case it can be for $400. Therefore, the total is $50 + $300 + $400 = $750.

Brad's Company Has Equipment with a Book Value of $500