BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following is the least liquid?
|
|
Stock
|
|
|
Debtors
|
|
|
Bills receivable
|
|
|
Machinery
|
Explanation:
Detailed explanation-1: -Inventory is the least liquid because the rate at which inventory is turned over and converted to cash can take years or not occur at all.
Detailed explanation-2: -Cash is considered to be the most liquid asset of all, while real assets (for example property) and private companies are typically the least liquid.
Detailed explanation-3: -The four assets requested from most to least liquid are cash, accounts receivable, merchandise inventory, and building.
There is 1 question to complete.