Inventories are usually the most liquid, but lowest-yielding, current asset of a firm.

Name: Inventories are usually the most liquid, but lowest-yielding, current asset of a firm.
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Question

Quizplus · Accepted Answer

Inventories are not necessarily the most liquid current asset of a firm, as accounts receivable or cash may be more liquid. Additionally, the yield on an inventory can vary depending on the product and the timing of its sale. Therefore, the statement is false.

Inventories Are Usually the Most Liquid, but Lowest-Yielding, Current Asset