{"id":51951,"date":"2024-04-15T23:32:11","date_gmt":"2024-04-15T23:32:11","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51951"},"modified":"2024-04-15T23:32:11","modified_gmt":"2024-04-15T23:32:11","slug":"arrange-the-following-in-chronological-order-about-assets-as-per-liquidity-order-1-debtors-2-building-3-cash-4-stock","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/arrange-the-following-in-chronological-order-about-assets-as-per-liquidity-order-1-debtors-2-building-3-cash-4-stock\/","title":{"rendered":"Arrange the following in chronological order about assets as per liquidity order. 1. Debtors 2. Building 3. Cash 4. Stock"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97880ebdeb1\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    2, 3, 1, 4                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    3, 4, 1, 2                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    1, 4, 2, 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    3, 1, 4, 2                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. 1, 4, 2, 3<\/strong><\/p>\n<p>Liquidity is the ability of an asset to be converted into cash quickly and easily without loss of value. Assets can be ranked in order of liquidity, with the most liquid assets being those that can be converted into cash most quickly and <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> easily.<\/p>\n<p>In the given question, the assets are:<\/p>\n<ol>\n<li>Debtors: Debtors are amounts owed to a company by its customers. They are considered to be liquid assets because they can be converted into cash relatively quickly by collecting the debts.<\/li>\n<li>Building: A building is a fixed asset that cannot be easily converted into cash. It would take time to sell the building and convert it into cash.<\/li>\n<li>Cash: Cash is the most liquid asset because it can be converted into any other asset or good immediately.<\/li>\n<li>Stock: Stock is inventory that a company holds for sale. It is considered to be a liquid asset because it can be sold relatively quickly.<\/li>\n<\/ol>\n<p>Therefore, the correct order of liquidity is:<\/p>\n<ol>\n<li>Cash<\/li>\n<li>Stock<\/li>\n<li>Debtors<\/li>\n<li>Building<\/li>\n<\/ol>\n<p>Option A is incorrect because it lists the building before the cash. The building is a fixed asset that cannot be easily converted into cash, while cash is the most liquid asset.<\/p>\n<p>Option B is incorrect because it lists the stock before the debtors. The stock is inventory that a company holds for sale, while debtors are <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> amounts owed to a company by its customers. Debtors are considered to be liquid assets because they can be converted into cash relatively quickly by collecting the debts.<\/p>\n<p>Option D is incorrect because it lists the debtors before the cash. The debtors are amounts owed to a company by its customers. They are considered to be liquid assets because they can be converted into cash relatively quickly by collecting the debts. However, cash is the most liquid asset because it can be converted into any other asset or good immediately.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Arrange the following in chronological order about assets as per liquidity order. 1. Debtors 2. Building 3. Cash 4. 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