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- A liquid asset is either available cash or an instrument that can easily be converted to cash. Liquid assets are perceived as being essentially identical to cash because they don't lose value when they're sold.
www.investopedia.com/ask/answers/032715/what-items-are-considered-liquid-assets.aspWhat Investments Are Considered Liquid Assets? - Investopedia
Oct 14, 2024 · Liquid assets are perceived as being essentially identical to cash because they don't lose value when they're sold. A cash equivalent is an investment with a...
- Steven Nickolas
- 2 min
Jan 22, 2023 · An asset's liquidity is a function of how easily it can be converted into cash. In corporate finance, liquid assets are those that can be used to pay off debts in a hurry. The most common...
- Claire Boyte-White
Jun 27, 2024 · A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities. Both...
- Cash. Includes physical money (local and foreign currency) as well as the savings account and/or current account balances.
- Cash equivalents. Cash equivalents are investment securities with a maturity period not exceeding a year. Examples include treasury bills, treasury bonds, certificates of deposit, and money market funds.
- Marketable securities. Stocks, bonds, and exchange traded funds (ETFs) are examples of marketable securities with a high degree of liquidity. They can be sold easily and it usually takes just a few days to receive the cash from their sale.
- Accounts receivable. Money owed to a business by its customers for goods and services provided makes up accounts receivable. The liquidity of accounts receivable varies.
Apr 5, 2024 · Liquidity is essentially a term used to portray how readily an asset can be converted to yield cash. Liquid assets make up an important part of company assets because they’re the go-to option in case the company urgently needs funds.
Mar 14, 2024 · Liquid assets are assets that can be quickly and easily converted into cash. They’re essential for businesses and individuals alike, providing liquidity that is needed to pay short term liabilities, secure credit, and a host of other finance-related considerations.
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Current Assets and Liquid Assets are both used to assess a company’s cash position and are also applied in the process of ratio analysis to compare with other related variables. They are similar, however, there is a slight difference between current assets and liquid assets.