What is a Liquid Asset?

5. What is a Liquid Asset?

  1. An asset that is not physical in nature
  2. Assets that have no tangible existence
  3. Assets of a company that are expected to be sold or used
  4. An asset that can easily be converted into cash

Answer: D) An asset that can easily be converted into cash

Explanation:

A liquid asset is a resource that can undoubtedly be changed over into cash in a short measure of time. Fluid resources incorporate things like money, currency market instruments, and attractive protections. The two people and organizations can be worried about following fluid resources as a piece of their total assets. For the motivations behind monetary bookkeeping, an organization's fluid resources are accounted for on its asset report as current resources.

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