In terms of liquidity inventory isA) more liquid than cash.B) more liquid than accounts receivable.C) more liquid than prepaid expenses.D) less liquid than store equipment.

Question

In terms of liquidity inventory isA)  more liquid than cash.B)  more liquid than accounts receivable.C)  more liquid than prepaid expenses.D)  less liquid than store equipment.

Christian Washington · Accepted Answer

Final Answer : C, Explanation :  Inventory is more liquid than prepaid expenses because it can be sold and converted into cash, whereas prepaid expenses are not easily convertible to cash.

In terms of liquidity inventory is

A) more liquid than cash.
B) more liquid than accounts receivable.
C) more liquid than prepaid expenses.
D) less liquid than store equipment.

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