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    • Liquid asset

      What Is a Liquid Asset, and What Are Some Examples?
      • 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
  1. 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.

  2. 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
    • 2 min
  3. Oct 14, 2024 · Cash on hand is a financial metric indicating the amount of liquid capital available to an individual or business. For businesses, it includes physical currency, funds in bank accounts, and liquid assets readily convertible to cash.

  4. Liquidity is the accessibility of capital (money) that’s transaction-ready. Cash, for instance, is the most liquid asset you can have. Need to buy something? Pull out your cash and buy it. Real estate, on the other hand, is among the least liquid assets you can own. The process of converting a property to cash can be long and complex.

  5. 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.

  6. Jan 17, 2024 · A liquidity ratio is a financial metric that measures a company’s ability to pay off its short-term debts and obligations. The liquidity ratio evaluates the amount of liquid or current assets available to cover the company’s current liabilities that are due within one year.

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  8. According to International Accounting Standard 7 (IAS 7), Cash “comprises cash on hand and demand deposits”. And cash equivalents “are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value”.

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