Question

Liquid Assets are inclusive of all current assets except OptionsInventories.Prepaid Expenses.Cash.Both (a) and (b) above.

Answer 1

Liquid assets are generally cash in hand or asset that can be easily converted into cash. The answer is both prepaid expenses and inventories. The prepaid assets are quite difficult to retrieve as cash, normally are written of as expense in the future. On the other hand, inventory is a list of all of a businesses assets.This disqualifies it as well as a liquid asset.