Which of the following is the most liquid asset?
A) Prepaid expenses
B) Inventory
C) Cash equivalents
D) Accounts receivable

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid assets that can be easily converted into cash, such as money market funds and short-term government bonds, making them the most liquid asset in this list. Prepaid expenses and inventory are not easily converted into cash, while accounts receivable may take time to collect and therefore are less liquid than cash equivalents.

Which of the Following Is the Most Liquid Asset