Finance 3716 ch. 2

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Depreciation is the accountants estimate of the cost of ------ used up in the production process

equipment

Rank the ease (from easiest to hardest) of turning the following assets into cash a. inventory b. cash equivalents c. accounts receivable d. plant and equipment

b c a d

Liquidity refers to the ---- and ---- with which assets can be converted to ----

speed ease cash


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