Question

2. One of the following is not an absolute liquid assets :
(a) cash in hand
bills receivable
(b) cash at bank (d) marketable investments

Answer 1

Answer:

Cash in hand bills receiveable

Answer 2

Bills receivable is not an absolute liquid asset.

• The assets that are highly liquid are referred to as assets that are absolutely liquid.
• The amount of cash at the bank or in hand and the investments that are marketable are included in this category.
• The bills receivable always have a possibility of turning into bad debts and might not be received. So, these are not considered absolutely liquid.
• Thus, it is the correct option.