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The amount of money available on hand and not tied up in fixtures, stock, and inventory

A. Working capital
B. Fixed capital
C. Liquid assets
D. Investment capital

User Robert J
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1 Answer

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Final answer:

The correct answer is Liquid assets (Option C), which refers to money or assets easily convertible to cash, illustrating a high level of liquidity for immediate or near-immediate uses.

Step-by-step explanation:

This term refers to assets that can be quickly converted into cash without significant loss of value. In the context of a firm, while money is a form of financial capital that can be used to acquire factors of production, it is not considered capital itself since it cannot create other goods directly. However, liquidity pertains to the ease and speed with which a financial asset can be used to purchase goods or services, thus making cash a highly liquid asset.

User Vincent De Lagabbe
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