Which of the Following Is the Most Liquid of All

question 87

Multiple Choice

Which of the following is the most liquid of all current assets?

• A) Marketable security
• B) Accounts receivables
• C) Cash
• D) Notes receivable
• E) Prepaid expense

---

Definitions:

Future Costs

Expenses or expenditures that are expected to be incurred in future accounting periods.

Fixed Costs

Regular, constant expenses that a business incurs regardless of the level of goods or services produced.

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which can be directly traced to the product itself.

Direct Labour

The wages and related benefits for workers who are directly involved in the manufacturing or production of goods.