Physical assets serve the same purpose as operating reserves.

Question

Quizplus · Accepted Answer

While physical assets can provide a source of liquidity and can be sold or used to obtain financing, they are not the same as operational reserves, which are liquid assets set aside specifically to cover unexpected expenses or cash flow disruptions. Physical assets may also have market value and depreciation considerations that make them less reliable for short-term funding needs.

Physical Assets Serve the Same Purpose as Operating Reserves