Inventory is generally more liquid than receivables.

Name: Inventory is generally more liquid than receivables.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Receivables can be converted to cash relatively quickly, often through the process of factoring or selling them to a third party. On the other hand, inventory can take longer to convert to cash as it must be sold or used in production before its value can be realized. Therefore, inventory is generally less liquid than receivables.

Inventory Is Generally More Liquid Than Receivables