Liquid Assets include which of the following items?

All of the above

Quick assets, also known as the "Acid-Test Ratio," represent a subset of current assets that can be rapidly converted into cash. The quick assets excludes inventories and other non-liquid current assets, such as prepaid expenses and advance tax. The quick ratio provides a more stringent assessment of a company's immediate liquidity position.
The formula to calculate the quick assets is as follows: Quick Assets = Current Assets - Inventories - Other Non-Liquid Current Assets
The quick ratio serves as a supplementary measure to the current ratio, offering additional insights into a company's ability to meet its short-term obligations without relying on the sale of inventories. Since inventories can take time to sell and convert into cash, the quick ratio provides a more conservative evaluation of liquidity. A higher quick ratio indicates a stronger ability to meet immediate financial commitments using more liquid assets, while a lower ratio may signal potential liquidity concerns. However, it's essential to interpret the quick ratio in conjunction with other financial metrics to gain a comprehensive understanding of a company's overall financial health and liquidity position.