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  1. aspireapp.com › blog › liquid-assets-explainedLiquid Assets Explained, With Examples, Uses, And Liquidity ...

    • 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.

  2. www.investopedia.com › ask › answersWhat are liquid assets, and why are they beneficial to a ...

    • Liquid Assets
    • Fixed Assets
    • Liquidity in An Economic Downturn

    If a debt suddenly becomes due, the simplest way to meet that obligation is with cash. Physical currency is the only truly liquid asset, since it represents capital in its most accessible form. Because funds deposited in checking or savings accounts can generally be accessed almost immediately, they are also considered a liquid asset. Stocks and bo...

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    The things a business owns that contribute to its profitability but are not easily converted into currency are called fixed assets. Common examples of fixed assets include real estate, vehicles and equipment. If a shipping business needs to pay off a creditor on a short deadline, selling its fleet of delivery vans or pieces of large packaging equip...

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    In the event of a decrease in revenue or an economic downturn, a company that is highly illiquidwould have to deal with selling off, or liquidating, fixed assets to meet its financial obligations. This could mean selling property or equipment that is essential to the day-to-day operations of the business, limiting its ability to generate revenue do...

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    • Claire Boyte-White

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  4. www.investopedia.com › terms › lWhat Is a Liquid Asset, and What Are Some Examples?

    Jun 27, 2024 · Liquid assets are important because a company consistently needs cash to meet its short-term obligations. Without cash, a company can't pay its bills to vendors or wages to...

  5. corporatefinanceinstitute.com › liquid-assetLiquid Asset - Definition, Example, Importance, Balance

    Liquid assets ensure a company’s ability to meet its immediate financial obligations and operating expenses. In addition, the assets serve as the company’s protection from unforeseen adverse events, such as a recession or a sudden decline in demand for the company’s products or services.

  6. seekingalpha.com › 4437420-what-are-liquid-assetsLiquid Assets: What They Are & Why They Matter - Seeking Alpha

    Apr 22, 2022 · Liquid assets include cash and anything that can be converted into cash quickly and easily. Learn how they compare with other assets and why they're important for investors and...

  7. onemoneyway.com › en › dictionaryWhat are liquid assets, and why do they matter in financial ...

    Why are liquid assets important for businesses? Liquid assets are vital for businesses because they ensure a company can meet its short-term financial obligations, such as paying bills, suppliers, and salaries.

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  9. www.enerpize.com › hub › liquid-assetsWhat are Liquid Assets: Definition, Examples, and How To ...

    Nov 11, 2024 · Below are some examples of liquid assets that can help small businesses maintain operational efficiency: Cash and cash equivalents. Cash is the most straightforward example of a liquid asset since it is available for immediate use.