Which of the following assets is most liquid?
A) Cash equivalents
B) Receivables
C) Inventories
D) Plant and equipment

Question

Quizplus · Accepted Answer

Cash equivalents are the most liquid asset as they can easily and quickly be converted into cash without a significant loss in value. Receivables, inventories, and plant and equipment, on the other hand, may take longer to convert into cash or may require selling at a discount.

Which of the Following Assets Is Most Liquid