Which of the Following Is Not a Liquid Asset
Log in for more information. 100 of inventory that is sold today for 100 cash. Dry Powder Accounting Basics Learn Accounting Economics Lessons Before investing in any asset its important to keep in mind the assets liquidity levels since it could be difficult or take time to convert back into cash. . Liquid assets are those which can be converted in to cash immediately without loosing any value. They do not include prepaid expenses and inventories. It can take months if not longer to sell a home at a reasonable price. A liquid asset is a type of asset that can quickly and easily be converted into cash while retaining its market value. In personal finance assets like homes and land are illiquid or non-liquid assets. View the full answer. Inventory is only a current assets it is not considered as a liquid asset. Liquid assets however are the assets that can be easily securely and quickly exchanged for legal t...