Which one of the following accounts is generally the most liquid?
A)Patent
B)Building
C)Accounts receivable
D)Equipment
E)Inventory

Question

Quizplus · Accepted Answer

Accounts receivable is generally considered the most liquid account because it represents money that is owed to the company and can be collected relatively quickly, often within a few days or weeks. In contrast, other accounts such as inventory or equipment may take longer to convert to cash, and a patent or building may not be easily sold or converted into cash at all.

Which One of the Following Accounts Is Generally the Most