Current Assets Rs85 000 Inventory Rs22 000 Prepaid Expenses Rs3 000 Then liquid assets will be ........

Current Assets Rs85,000; Inventory Rs22,000; Prepaid Expenses Rs3,000. Then liquid assets will be :

Rs63,000

Rs60,000

Rs82,000

Rs1,10,000

- Liquid assets are those assets that are readily convertible into cash. This usually includes cash, bank balances, and accounts receivable.

- Current assets total Rs85,000.

- Inventory is a part of current assets but not considered a liquid asset because it might not be quickly convertible to cash.

- Prepaid expenses are also a part of current assets but not liquid as they can't be converted into cash.

- To find liquid assets, subtract inventory and prepaid expenses from current assets.

- Calculation: Rs85,000 (Current Assets) - Rs22,000 (Inventory) - Rs3,000 (Prepaid Expenses) = Rs60,000.

- Option:1 Rs63,000 is incorrect as it doesn't account for prepaids.

- Option:2 Rs60,000 is correct.

- Option:3 Rs82,000 and Option:4 Rs1,10,000 are not plausible.

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