Advertisements
Advertisements
Question
Why stock (inventory) is excluded from liquid assets?
Very Short Answer
Advertisements
Solution
Inventory is not considered to be a liquid asset for the following reasons:
- It is not known whether or not it will be sold, or when it will be sold; the price of the inventory is also unknown.
- There is a possibility that it will take some time before it is transformed into cash or debts.
shaalaa.com
Is there an error in this question or solution?
