Which one of the following accounts is the most liquid?
A) Inventory
B) Building
C) Accounts Receivable
D) Equipment
E) Land

Question

Quizplus · Accepted Answer

Accounts Receivable is the most liquid asset as it represents money owed to the company by its customers, which can be easily converted into cash. Inventory, buildings, equipment, and land are all less liquid, as they cannot be easily converted into cash without significant time and effort.

Which One of the Following Accounts Is the Most Liquid