Which of the following ﬁnancial statement items is generally considered the most liquid?
A) Intangible assets.
B) Net ﬁxed assets.
C) Long-term debt.
D) Patents and trademarks.
E) Accounts receivable.

Question

Quizplus · Accepted Answer

Accounts receivable are generally considered the most liquid financial statement item, as they represent money owed to a company by its customers that is expected to be collected within a short period of time (usually 30-90 days). Intangible assets, net fixed assets, long-term debt, patents, and trademarks are all less liquid than accounts receivable.

Which of the Following ﬁNancial Statement Items Is Generally Considered