Which of the following assets is most liquid?
A) cash equivalents
B) receivables
C) inventories
D) plant and equipment

Question

Quizplus · Accepted Answer

Cash equivalents are highly liquid assets that can be easily converted into cash. Receivables can be converted into cash, but they may take time to collect. Inventories and plant and equipment are typically not as liquid and would take more time and effort to sell for cash.

Which of the Following Assets Is Most Liquid