Which statement is true about liquidity? Prepaid Rent is
A) Less liquid than land
B) Less liquid than rent revenue
C) Less liquid that inventories
D) More liquid than cash
E) More liquid than inventories

Question

Quizplus · Accepted Answer

Prepaid rent is considered less liquid than inventories because it cannot be quickly converted into cash or used to settle liabilities, whereas inventories can be sold to generate cash.

Which Statement Is True About Liquidity? Prepaid Rent Is