Which of the following assets is the MOST liquid?
A) Inventory
B) Prepaid expenses
C) Accounts receivable
D) Cash

Name: Which of the following assets is the MOST liquid? A) Inventory B) Prepaid expenses C) Accounts receivable D) Cash
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Question

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Cash is the most liquid asset as it can be readily used for transactions without any conversion or processing. Other assets such as inventory, prepaid expenses, and accounts receivable may need to be sold or converted into cash before they can be used for transactions.

Which of the Following Assets Is the MOST Liquid