- Put the following assets in order of liquidity: accounts receivable, inventory, cash, and marketable securities.
Current assets which include cash and other assets that could easily be converted into cash within the operating cycle of a business are usually listed in order of liquidity (Keown 4). All assets have the ability to generate some cash in some way but other assets are more liquid than others. The above mentioned assets would be listed in the following order:
- Cash- No other asset is more liquid than cash. Cash is how a business meets its obligations which range from ...