Which of the following best represents examples of liquid assets?
A) Cash and office equipment
B) Cash and accounts receivable
C) Cash and inventory
D) Cash and prepaid assets

Question

Quizplus · Accepted Answer

Liquid assets are assets that can easily be converted into cash. Cash is the most liquid asset. Accounts receivable, which are payments that are expected to be collected from customers, can also be easily converted into cash and are considered liquid assets. Office equipment, inventory, and prepaid assets are not as easily converted into cash and are therefore not considered as liquid assets.

Which of the Following Best Represents Examples of Liquid Assets