What alternate phrase is synonymous with current assets ?
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Answer: C. Liquid assets
Explanation
Current assets represent resources that businesses can quickly convert into cash. Liquid assets is the direct synonym reflecting this high conversion speed. Short-term financial resources support daily operational activities and obligations. Working capital consists of current assets minus current liabilities. Cash, accounts receivable, and marketable securities form primary liquid holdings. Liquidity ensures a firm can meet immediate financial obligations on time.
Financial analysts assess liquidity ratios to determine business solvency. Retail companies maintain high liquid assets to manage daily cash transactions. Quick asset conversions prevent operational disruptions during cash flow crunches. Fixed assets represent long-term capital investments that lack quick liquidity. Non-liquid assets describe property or equipment that cannot be sold rapidly. Cash is a specific component rather than the broad category of current assets.
- Subject
- Engineering
- Category
- Civil Engineering
- Topic
- —
- Difficulty
- medium
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