Which of the Following Is the Most Liquid Asset

question 108

Multiple Choice

Which of the following is the most liquid asset?

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

---

Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, excluding investments and non-operational assets.

Net Operating Income

The profit a company generates from its core business operations, excluding taxes and interest.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated by dividing the net profit from the investment by the initial cost of the investment.

Operating Assets

Assets used in the daily operations of a business to generate income, including equipment, machinery, and buildings.