Inventory is more liquid than accounts receivable because the company must first sell the goods.

Name: Inventory is more liquid than accounts receivable because the company must first sell the goods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accounts receivable are generally considered more liquid than inventory because they represent money that is owed to the company and is expected to be received in the short term, whereas inventory must first be sold to convert it into cash.

Inventory Is More Liquid Than Accounts Receivable Because the Company