SOLUTION
Inventory is excluded from liquid assets because:
(i) there is uncertainty whether it will be sold or not and at what price it will be sold; (ii) it will take time before it is converted into trade receivables and cash.
SOLUTION
Inventory is excluded from liquid assets because:
(i) there is uncertainty whether it will be sold or not and at what price it will be sold; (ii) it will take time before it is converted into trade receivables and cash.