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- 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.
www.investopedia.com/terms/l/liquidasset.asp
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.
Oct 14, 2024 · Cash on hand is considered to be a liquid asset because it can be readily accessed. The money in your checking account, savings account, or money market account is considered liquid because...
- Steven Nickolas
- 2 min
Jun 27, 2024 · Liquid assets include cash on hand, accounts receivable, checking and savings bank account balance, marketable securities, and cash equivalents. Current liabilities include accounts payable, short-term debt, accrued expenses, income taxes payable, and the current portions of long-term debt.
Jul 20, 2024 · Current assets are a representation of assets including cash and objects that will be converted into liquid assets within 12 months. These assets can include: Cash and cash equivalents: The total amount of cash on hand. Cash equivalents refer to short-term, high-quality investments, including certificates of deposit (CDs) and commercial paper.
Oct 2, 2024 · The simple definition of liquidity for financial assets is that it refers to how easily an asset can be converted to cash, without that conversion negatively affecting the...
- Henry Blodget
Jul 19, 2022 · Cash is the most liquid asset, and companies may also hold very short-term investments that are considered cash equivalents that are also extremely liquid. Companies often have other...
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Is cash on hand a liquid asset?
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Is a liquid asset a cash equivalent?
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What is a liquid asset?
What is a Liquid Asset? A liquid asset is cash on hand or an asset other than cash that can be quickly converted into cash at a reasonable price. In other words, a liquid asset can be quickly sold on the market without a significant loss of its value.