Current assets 85000 ,inventory 22000,prepaid expenses 3000.then liquid assets will be?

Question

Answer

Calculation of Liquid Assets

Current assets: 85000

Inventory: 22000

Prepaid expenses: 3000

Explanation

Liquid assets are the assets that can be easily converted into cash without losing their value. These assets are essential for a company to meet its short-term obligations. The calculation of liquid assets involves subtracting the non-liquid assets from the current assets of a company. Here, we have:

Current assets = 85000

Non-liquid asset (Inventory) = 22000

Non-liquid asset (Prepaid expenses) = 3000

Therefore, liquid assets can be calculated as:

Liquid assets = Current assets - Non-liquid assets

Liquid assets = 85000 - (22000 + 3000)

Liquid assets = 60000

Therefore, the liquid assets of the company are 60000.

Answer

Liquid assets = current assets - inventory - prepaid expenses
=85000 - 22000- 3000
= 60000

Similar Class 12 Doubts

A and B are partners sharing profit and losses in the ratio of 5:3.They decided to share future profits equally.For this purpose assets and liabilities are revalued as under

Directions: There are two statements marked as Assertion (

The Current Assets of APE Ltd. are T 6,00,000 ; Current Liabilities are 2,00,000; Inventories are 1,50,000; Prepaid Expenses are 50,000 and Cash and Cash Equivalents are 1,00,000. What is its quick ratio?

Which of the following is true relating to Income and expenditure account

C. A C. L, liquid assets when C. R & Acid test ratio given current ratio 2.8 acid test ratio 1.5 working capital =₹162000 find out current assets, current liabilities ,liquid assets?

Top Courses for Class 12

Suggested Free Tests

Related Content

Schools

Competitive Examinations

Quick Access Links

Technical Exams