Which assets can be turned into cash quickly without losing value, including cash, stock, and debtors?

• A. Liquid assets
• B. Fixed assets
• C. Intangible assets
• D. Current liabilities

Answer: (A)

The main idea here is liquidity—the ability to turn assets into cash quickly with little or no loss in value. Liquid assets are those that can be sold or collected rapidly to raise cash. Cash itself is the most liquid, and readily traded securities like stock can usually be sold quickly in the market. Debtors (accounts receivable) represent money owed to the business and can be converted to cash when customers pay. In contrast, fixed assets (like buildings or machinery) are not easily turned into cash fast without potentially taking a loss, intangible assets can be hard to sell quickly, and current liabilities are obligations, not assets. So the option describing liquid assets fits best.