SpletQuestion 20 1 pts The least liquid current asset is accounts receivable cash O plant and equipment common equity O inventory This problem has been solved! You'll get a … SpletAcid test ratiois a more rigorous test of the short-term liquidity of the venture. It eliminates inventory, which is the least liquid current asset. The formula is: Usually a 1:1 ratio would be considered favorable Activity Ratios Average collection periodindicates the average number of days it takes to convert accounts receivable into cash.

Current Assets (Definition, Examples) Full List of Items Included

SpletThe liquid assets are the current assets which can be readily and easily converted into cash at the current market price. However, inventories are the least liquid current asset, as it cannot be readily converted into cash at the prevailing market price. This is because of a variety of reasons such as obsolescence or changes in taste or ... Splet22. mar. 2024 · Inventories (often also called "stocks") are the least liquid kind of current asset. Inventories include holdings of raw materials, components, finished products … tantric the chain lyrics

Theory MCQs of Accounting Ratios (class 12 Accountancy)

SpletCurrent Assets = Cash and Cash Equivalent + Account Receivable + Inventory + Prepaid Expenses + Marketable Securities + Other Liquid Assets Current Assets = $8,000 + $2,500 + $7,800 + $1,800 + $2,000 + $4,000 = $ 26,100 So, after the calculation, the resultant current assets for Retail King is $26,100 Real-world Examples #1 Starbucks Corporation SpletCurrent assets are expected to be consumed, sold, or converted into cash either in one year or in the operating cycle, whichever is longer. They are usually presented in order of liquidity on the balance sheet and include cash and cash equivalents, accounts receivables, inventory, prepaid, and other short-term assets. Splet25. jul. 2024 · Liquid assets are the most basic type of asset, used by consumers and businesses alike. Cash on hand is considered a liquid asset due to its ability to be readily … tantric teachings are