Liquid assets include___________.

only cash

No worries! We‘ve got your back. Try BYJU‘S free classes today!

cash and debtors only

No worries! We‘ve got your back. Try BYJU‘S free classes today!

cash, debtors, Bills receivable only.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

cash, debtors, Bill receivable and marketable securities only.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D cash, debtors, Bill receivable and marketable securities only.
Current Assets are further classified as Liquid Assets and Non Liquid Assets.

Liquid assets are those which can be converted in to cash immediately without loosing any value. Cash , Debtors, Bills Receivables, marketable securities are the example of liquid assets.

Non liquid assets are those which can not be encashed on immediate basis and might require sometime to get the same converted in to cash. Stock/Inventory is the example of non liquid assets.

Suggest Corrections

Similar questions

Q. Calculate : Sales
Opening Debtors Rs.5000
Opening Bills Receivable Rs.2000
Cash received from Debtors (including cash from bills receivable) Rs.10000
Closing bills receivable Rs.1000
Closing debtors Rs.8000

Q. Question : From the details given below, find out the credit sales and total sales.

	(Rs)
Opening Debtors	$45, 000$
Closing Debtors	$56, 000$
Discount allowed	$2, 500$
Sales returns	$8, 500$
Irrecoverable Amount	$4, 000$
Bills receivables received	$12, 000$
Bills receivable dishonoured	$3, 000$
Cheque dishonoured	$7, 700$
Cash Sales	$80, 000$
Cash received from Debtors	$2, 30, 000$
Cheque received from Debtors	$25, 000$

Q. Question : Prepare the suitable accounts and find out the missing figure if any

	(Rs)
Opening balance of debtors	$14, 00, 000$
Opening balance of bills receivable	$7, 00, 000$
Closing balance of bills receivable	$3, 50, 000$
Cheque dishonoured	$27, 000$
Cash received from debtors	$10, 75, 000$
Cheque received and deposited in the bank	$8, 25, 000$
Discount allowed	$37, 500$
Irrecoverable amount	$17, 500$
Returns Inwards	$28, 000$
Bills receivable received from customers	$1, 05, 000$
Bills receivable matured	$2, 80, 000$
Bills discounted	$65, 000$
Bills endorsed to creditors	$70, 000$

Q. Following is the list of current assets:
(I) Stock-in-trade

(II) Cash in hand
(III) Bills Receivable

(IV) Debtors
(V) Investments

(VI) Accrued Interest
(VII) Advertisement prepaid

(VIII) Cash at bank
What is correct sequence in order of liquidity?

From the following information prepare the bills receivable account and total debtors account for the year ended December 31,2005.

$\begin{matrix} Rs. Opening balance of debtors & 1, 80, 000 Opening balance of bills receivable & 55, 000 Cash sales made during the year & 95, 000 Credit sales made during the year & 14, 50, 000 Return inwards & 78, 000 Cash received from debtors & 10, 25, 000 Discount allowed to debtors & 55, 000 Bills receivable endorsed to creditors & 60, 000 Cash received (bills matured) & 80, 500 Irrecoverable account & 10, 000 Closing balance of bills receivable on Dec.31,2005 & 75, 500 \end{matrix}$

Join BYJU'S Learning Program