Which of the following needs to be excluded from current assets apart
Right Answer is: A
• Liquid asset is cash in hand or an asset that can readily converted into cash.
• Current Assets are: cash, short-term investments, accounts receivable, marketable securities, prepaid expenses, inventory etc.
• Liquid Assets are: Cash in hand, cash at bank, cash equivalent, marketable securities, accounts receivable etc.
• Prepaid expenses need to be excluded from current assets apart from
closing stock, to get the balance as liquid assets.