Which of the following types of receivables is generally the most liquid?
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A. B. C. D. E.A
Trade receivables are generally the most liquid type of receivable because they are generated from the sale of the firm's goods or services. Other forms of receivables are less liquid because the terms of repayment may vary such as the case with those due from corporate officers and/or affiliated companies. Of particular interest is notes receivable. The analyst should take care to understand the terms of these arrangements.