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Jun 27, 2024 · A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable...
Sep 27, 2024 · A liquid asset is cash or a cash equivalent that can be easily converted to cash. Learn about the factors that affect liquidity, the importance of liquid assets, and some common examples of liquid and non-liquid assets.
- 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.
A liquid asset is an asset that can be quickly sold without losing much value. Learn the examples of liquid assets, how they are reported on the balance sheet, and why they are important for businesses and individuals.
Aug 8, 2024 · Liquid assets are assets that can be converted into cash relatively easily — typically with little or no loss in value. Liquid assets can include cash in a checking or savings account, money market accounts, or marketable securities like stocks, bonds, mutual funds, and ETFs.
- Austin Kilham
Dictionary. Partner with us. Become An Instructor. Advertise With Us. For Enterprises. Support. Contact Us. Follow us on. Guide to Liquid Assets and its definition. We explain it with examples, vs fixed assets, list of them and vs current assets.
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Nov 11, 2024 · Cash is the most straightforward example of a liquid asset since it is available for immediate use. Cash equivalents, such as treasury bills, money market funds, and certificates of deposit (CDs), are also highly liquid investments that may be quickly converted into cash while retaining their market value. Marketable securities.