The most liquid of current assets, in order, are:
A) accounts receivable, inventory, cash and cash equivalents.
B) cash and cash equivalents, accounts receivable, marketable securities.
C) cash and cash equivalents, marketable securities, accounts receivable.
D) marketable securities, cash and cash equivalents, accounts receivable.

Question

Quizplus · Accepted Answer

Cash and cash equivalents are the most liquid current assets, followed by marketable securities which can be easily traded for cash, and then accounts receivable which can take more time to collect and convert into cash. Inventory is not as liquid as these assets and therefore comes last.

The Most Liquid of Current Assets, in Order, Are