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Oct 14, 2024 · 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...
- Steven Nickolas
- 2 min
Jun 27, 2024 · Cash on hand is considered the most liquid type of liquid asset since it is cash itself. Cash is legal tender that an individual or company can use to make payments on liability obligations.
Jul 19, 2022 · Financial liquidity refers to how easily assets can be converted into cash. Cash, public stock, inventory, and some receivables are considered more liquid as a company or individual can expect...
- Jim Mueller
- 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.
Jul 30, 2024 · Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset.
Apr 11, 2024 · Yes, cash is a liquid asset. It is a company's most liquid asset, such that the liquidity of all other assets is compared to the liquidity of cash. What is an illiquid asset? An illiquid asset can't be easily converted to cash. Examples would be machinery, property, or supplies.
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Apr 22, 2022 · A liquid asset is anything that can be converted to cash quickly. Liquid assets are important because they can be used to pay for liabilities or any unexpected expenses after the assets...