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      • 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 are quickly converted into cash.
      seekingalpha.com/article/4437420-what-are-liquid-assets
  1. Jan 22, 2023 · An asset's liquidity is a function of how easily it can be converted into cash. In corporate finance, liquid assets are those that can be used to pay off debts in a hurry. The most common...

    • Claire Boyte-White
  2. 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...

  3. Learn about liquid assets, management, and their importance for businesses. Explore examples and the differences between liquid and non-liquid assets.

  4. Oct 28, 2024 · Why are liquid assets important? Liquid assets provide you with cash when your business needs it. This cash could cover operational costs such as supplier invoices, employee wages, insurance payments, and ongoing bills. More importantly, liquid assets are invaluable in providing a safety buffer.

    • 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.
  5. 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...

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  7. Jul 7, 2024 · Liquid asset refers to a financial resource or asset that can be converted into liquid cash quickly with minimum value on its value. Liquid assets hold an economic value for an individual, corporation, or government.

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