CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

The least liquid current asset is ______.

A. marketable securities
B. accounts receivable
C. inventory

Correct Answer: C

Inventory is the least liquid current asset and the most likely source of losses. Therefore, inventory is excluded from current assets in computing the quick ratio.

User Contributed Comments 7

User Comment
danrow Which one of those is the most liquid asset? Marketable securities?
surob Yes
Drzewes If it was as one of the possibilities, would prepaid expenses go as the least liquid?
Psalm119 yes. i believe prepaid expenses would be less liquid in comparison to inventory.
reganbaha cash
birdperson cash is most liquid
ascruggs92 A/R can be factored (sold for money) so they are pretty liquid
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