Arrange the following assets in decreasing order of liquidity, i.e., the most liquid should be listed first.
I.equipment and machinery;
II.inventories;
III.accounts receivable;
IV.marketable securities

Question

Quizplus · Accepted Answer

Marketable securities are the most liquid assets as they can be quickly converted into cash at their market value. Accounts receivable are next, as they represent money owed to the company that will be received in the short term. Inventories are less liquid because they need to be sold, which can take time. Equipment and machinery are the least liquid as they are fixed assets that cannot be easily converted into cash without a significant time investment.

Arrange the Following Assets in Decreasing Order of Liquidity, I