Among the assets listed below, which one is considered the most liquid?
A) Cash
B) Accounts receivable
C) Merchandise inventory
D) Prepaid expenses

Question

Quizplus · Accepted Answer

Cash is considered the most liquid asset because it can be easily and immediately converted into goods or other assets. Accounts receivable and merchandise inventory may take time to convert into cash, while prepaid expenses represent payments for goods or services that have not yet been received.

Among the Assets Listed Below, Which One Is Considered the Most