Which of the following is the least liquid current asset?
A)Accruals
B)Marketable securities
C)Accounts receivable
D)Inventory

Question

Quizplus · Accepted Answer

Inventory is the least liquid current asset because it takes more time to convert it into cash than other current assets like accounts receivable, marketable securities, and accruals. Unlike accounts receivable or marketable securities, inventory may need to undergo a selling process that can take time and may not necessarily guarantee a full cash value return. Hence, inventory is less reliable as a quick source of cash.

Which of the Following Is the Least Liquid Current Asset