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- 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 short-term maturity such as stocks, bonds, and mutual funds that can be quickly converted to cash.
www.investopedia.com/ask/answers/032715/what-items-are-considered-liquid-assets.aspWhat Investments Are Considered Liquid Assets? - Investopedia
Oct 14, 2024 · A liquid asset can be sold quickly, and its value doesn't drop when converted to cash. Examples include cash and its near equivalents, such as stocks and bonds.
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Jun 27, 2024 · A liquid asset is cash on hand or an asset that can be easily converted to cash. In terms of liquidity, cash is supreme since cash as legal tender is the ultimate goal.
Cash equivalents are short-term, highly liquid assets that can readily be converted into known amounts of cash and with little risk of price fluctuations.
- 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.
Oct 6, 2024 · Cash equivalents are short-term, liquid investments that can be quickly converted into cash. Common types include Treasury bills, commercial paper, and money market funds. They play a crucial role in managing a company’s liquidity and financial health.
Jul 31, 2023 · Cash equivalents are highly liquid investment securities that can be converted to cash easily and are found on a company's balance sheet.
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May 16, 2024 · Liquid assets are cash equivalents that can be converted into cash quickly at a low risk of loss in value. Having liquid assets means a business or household has funds free from financial risk. Examples of liquid assets are savings and checking accounts, money market securities with short-term maturities, and highly liquid markets like Treasury ...