The most liquid asset is:
A)owners' equity.
B)cash.
C)accounts payable.
D)sales.

Question

Quizplus · Accepted Answer

Cash is the most liquid asset as it can be readily used to pay off liabilities or purchase other assets. Owners' equity represents the residual interest in the assets of the business after all liabilities are paid, and is not readily exchangeable for cash. Accounts payable are liabilities that must be paid off using cash or other assets. Sales represent revenue earned by the business, but do not represent an asset that can be readily exchanged for cash.

The Most Liquid Asset Is