Which is the most liquid form of assets?
A)Cash
B)Accounts Receivable
C)Inventory
D)Supplies

Question

Quizplus · Accepted Answer

Cash is the most liquid form of assets as it can be easily converted into other forms of assets or used to settle liabilities immediately. Accounts Receivable may also be liquid but not as much as cash, as it may take time to collect from customers. Inventory and supplies require additional steps to convert them into cash or usable forms, making them less liquid.

Which Is the Most Liquid Form of Assets