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  1. Jun 27, 2024 · Business assets are usually broken out through the quick and current ratio methods to analyze liquidity types and solvency. Examples of liquid assets may include cash, cash equivalents, money ...

    • 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. 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.

  3. Jun 27, 2024 · A liquid asset is calculated by determining the total liquid assets, adding up the assets, then subtracting the total current liabilities including, short-term debt and obligations. The advantages of liquid assets include easy conversion to cash, financial flexibility, price safety and stability, peace of mind, and expanded investment opportunities.

  4. Jun 19, 2024 · A financial asset is a liquid asset that represents—and derives value from—a claim of ownership of an entity or contractual rights to future payments from an entity. A financial asset's worth ...

  5. Jul 19, 2022 · Market liquidity refers to a market's ability to allow assets to be bought and sold easily and quickly, such as a country's financial markets or real estate market. The market for a stock is ...

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  7. Aug 8, 2024 · The Takeaway. 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. Liquid investments can play a surprisingly important ...

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