Brad's Company has equipment with a book value of £500 that could be sold today at a 50% discount.Its inventory is valued at £400 and could be sold to a competitor for that amount.The firm has £50 in cash and customers owe them £300.What is the accounting value of its liquid assets?

Question

Quizplus · Accepted Answer

Liquid assets include cash, accounts receivable, and inventory. Cash is £50, accounts receivable is £300, and inventory is £400. Adding these gives £750. The equipment is not considered a liquid asset.

Brad's Company Has Equipment with a Book Value of £500