Which of the following assets 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 turned into cash equivalents or used to pay current liabilities. Accounts receivable, merchandise inventory, and prepaid expenses have varying levels of liquidity and may take longer to convert to cash.

Which of the Following Assets Is Considered the Most Liquid