An asset is considered to be liquid if:
A) it is readily converted into a current asset.
B) it is an intangible asset.
C) it is readily converted into cash.
D) it is part of retained earnings.

Question

Quizplus · Accepted Answer

An asset is considered to be liquid if it can be readily converted into cash. This means that the asset can easily be sold or traded for cash without affecting its market value. Assets such as stocks, bonds, and certain types of real estate can be considered liquid, while assets such as machinery or equipment may not be as easily converted into cash. Therefore, option C is the correct answer.

An Asset Is Considered to Be Liquid If