Which type of asset is typically considered a liquid asset?

The correct choice reflects the nature of liquid assets, which are defined by their ability to be quickly converted into cash without significantly affecting their value. Cash and cash equivalents are at the top of the liquidity hierarchy, as they can be used immediately for transactions.

In contrast, real estate properties, patents and trademarks, and manufactured goods are not typically classified as liquid assets. Real estate can take time to sell and may incur costs that affect its value during the process. Patents and trademarks are intangible assets that might require considerable time and legal processes to transfer or sell, and they may not have a readily available market. Manufactured goods, while they can be sold, also require time and effort to find buyers and may not be instantly convertible to cash. This characteristic of cash and cash equivalents being readily available makes it the clear choice when identifying liquid assets.