Which of the following is an example of an illiquid asset? accounts receivable money in a checking account a truck owned by a moving company an outstanding bill owed to a supplier

Question

Rebecca Baird

Business

30 July, 01:30

Which of the following is an example of an illiquid asset? accounts receivable money in a checking account a truck owned by a moving company an outstanding bill owed to a supplier

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Answers (1)

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Kyla · Answer 1

The answer is "money in a checking account".

Illiquid alludes to the condition of a security or other resource that can only with significant effort be sold or traded for money without a considerable misfortune in esteem. Illiquid resources may likewise be difficult to move rapidly due to an absence of prepared and willing financial specialists or theorists to buy the benefit. Furthermore, an organization might be considered illiquid in the event that it can't get the money important to meet obligation commitments. Illiquidity is the inverse of liquidity.

Illiquidity with regards to a business alludes to an organization that does not have the money streams important to make its required obligation installments, however it doesn't mean the organization is without resources.