The most liquid asset is:
A)Sales.
B)Cash.
C)Accounts payable.
D)Owners' equity.

Question

Quizplus · Accepted Answer

Cash is the most liquid asset as it can be easily converted into other assets such as investments or inventory. Sales represent revenue earned, accounts payable represent money owed to suppliers, and owners' equity represents the residual interest in the assets of the company after liabilities are deducted, none of which are as immediately liquid as cash.

The Most Liquid Asset Is