Which of the following in its narrowest sense consists of a firm's holdings of currency and demand deposits?
A)net working capital
B)cash
C)near money
D)commercial paper

Question

Quizplus · Accepted Answer

Cash consists of a firm's holdings of currency (notes and coins) and demand deposits (checking accounts) and is the most liquid asset. The other options refer to broader categories of assets. Net working capital includes accounts receivable, inventory, and accounts payable. Near money includes assets that are not cash but can be quickly converted into cash, such as savings accounts, money market funds, and short-term government securities. Commercial paper refers to short-term debt securities issued by corporations.

Which of the Following in Its Narrowest Sense Consists of a Firm's