Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

Which of the following is considered the most liquid asset?

Inventory

Cash

Accounts Receivable

Notes Receivable

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Verified step by step guidance

Understand the concept of liquidity: Liquidity refers to how quickly and easily an asset can be converted into cash without losing value.

Review the options provided: Inventory, Cash, Accounts Receivable, and Notes Receivable.

Analyze each option: Cash is the most liquid asset because it is already in its final form and does not require conversion. Accounts Receivable and Notes Receivable require collection processes, and Inventory requires selling and possibly additional processing before conversion to cash.

Compare the liquidity of the options: Cash is the most liquid, followed by Accounts Receivable, Notes Receivable, and Inventory, which is the least liquid due to the steps involved in selling and converting it into cash.

Conclude that Cash is considered the most liquid asset among the options provided.