Which of the assets listed below is considered the most liquid?
A)Accounts receivable
B)Cash
C)Inventory
D)Prepaid insurance

Question

Quizplus · Accepted Answer

Cash is considered the most liquid asset as it can be easily and quickly converted into other forms of payment or used to meet expenses. Accounts receivable and inventory may require some time, effort, and resources to convert into cash, while prepaid insurance represents a future benefit rather than a current asset.

Which of the Assets Listed Below Is Considered the Most