Question

Which of the following current assets will not be included in the calculation of liquid assets? a. Debtors
b. Cash
c. Prepaid Expenses
d. Bank

Answer 1

Answer:

Option C is Correct i.e prepaid Expenses

Explanation:

Liquid assets are those assets which are readily converted into cash and will include cash balance, bills receivable, Sundry debtors and short term investments. But it does not include prepaid expenses and inventories.