Inventory is more liquid than accounts receivable because receivables must be collected and some customers may not be willing to pay,while inventory need only be sold in a retail store.

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This statement is false. Inventory may also become unsellable or depreciate in value over time, making it less liquid than accounts receivable in some cases. Additionally, there are avenues for collecting overdue receivables, such as collections agencies or legal action, which can make them more liquid than unsellable or obsolete inventory.

Inventory Is More Liquid Than Accounts Receivable Because Receivables Must