Accounting WAEC

Assets that are readily convertible into cash are termed as?

A. Liquid assets
B. Fixed assets
C. Intangible assets
D. Tangible assets

Correct Answer: Option A

Explanation

Liquid assets are assets that can be converted into cash in a short time, with little or no loss in value. Liquid assets include items such as accounts receivable, demand and time deposits, gilt-edged securities.

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