Which of the Following Assets Is the MOST Liquid

question 101

Multiple Choice

Which of the following assets is the MOST liquid?

• A)Prepaid expenses
• B)Cash
• C)Accounts receivable
• D)Inventory

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Definitions:

Stockholders' Equity

The value of a company's assets minus its liabilities, representing the ownership interest of the shareholders.

Property, Plant, and Equipment

Property, Plant, and Equipment (PP&E) are tangible, long-term assets used in the operation of a business, not intended for resale.

Net Income

The amount of money that remains from revenues after all expenses, taxes, and costs have been subtracted; a measure of profitability.

Net Profit Margin Ratio

A financial ratio indicating the percentage of net income generated from total revenue.