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 any other asset or used to pay off liabilities. Sales, accounts payable, and owners' equity are not considered assets. Sales are revenue earned from the sale of goods or services, accounts payable are liabilities owed to suppliers for goods or services received, while owners' equity represents the residual interest in the assets of the company after liabilities are deducted.

The Most Liquid Asset Is