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Liquid asset
- 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 The money in your checking account, savings account, or money market account is considered liquid because it can be withdrawn easily to settle liabilities.
www.investopedia.com/ask/answers/032715/what-items-are-considered-liquid-assets.aspWhat Investments Are Considered Liquid Assets? - Investopedia
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...
- Steven Nickolas
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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 and cash equivalents: Cash is cash and will always be the most liquid account in current assets. This is because the cash sitting in a bank account can be accessed whenever needed. A company might even have cash on hand. Therefore, there is no conversion needed for cash as it can be used to buy items or settle liabilities right away.
Cash and cash equivalents are considered to be highly liquid assets, meaning they can be easily and quickly converted into cash without significant loss of value.
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.
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.
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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. Generally, liquid assets are traded on well-established markets with a large number of buyers and sellers.