Inventory is a relatively liquid asset and usually appears above Accounts Receivable on the balance sheet.

Question

Quizplus · Accepted Answer

Inventory is less liquid than accounts receivable and typically appears below accounts receivable on the balance sheet. Accounts receivable are amounts owed by customers for goods or services already delivered, making them more readily convertible into cash compared to inventory, which requires a sale process.

Inventory Is a Relatively Liquid Asset and Usually Appears Above