Which of the following types of assets is considered to be completely liquid?
A) accounts receivable
B) cash
C) prepaid expenses
D) marketable securities

Question

Quizplus · Accepted Answer

Cash is considered the most liquid asset as it can be easily converted into any other form of asset or currency. Accounts receivable and prepaid expenses may take time to convert into cash, while marketable securities may have restrictions on their sale or may fluctuate in value.

Which of the Following Types of Assets Is Considered to Be