Ad
related to: what are liquid assets on a company balance sheet that will be usedGet A Free Guided QuickBooks® Setup. Automatically Track All Your Income And Expenses. Track Everything In One Place. Explore The #1 Accounting Software For Small Businesses.
- Free QuickBooks® Setup
Start Off Right With Help
Setting Up By A QuickBooks Expert.
- Free 30 Day Trial
Sign Up Today For Your Free
30-Day Trial. Risk Free!
- Invoices Made To Be Paid
Get Your Money 2x Faster
Than With Paper Invoices.
- QuickBooks® Mid-Market
Customizable Solutions To Help Mid-
Sized Businesses Grow. Learn More.
- Free QuickBooks® Setup
Search results
Cash, money market instruments, and marketable securities
- 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 securities. Both individuals and businesses can be concerned with tracking liquid assets as a portion of their net worth.
www.investopedia.com/terms/l/liquidasset.asp
Jun 27, 2024 · Key Takeaways. A liquid asset is an asset that can easily be converted into cash within a short amount of time. Liquid assets generally tend to have liquid markets with high levels of...
Jan 22, 2023 · In corporate finance, liquid assets are those that can be used to pay off debts in a hurry. The most common examples of liquid assets are cash – on-hand or deposited in a bank – and...
- Claire Boyte-White
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.
- 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.
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. It is expected to provide future economic benefits to the holder of the asset within a period of 90 days.
Jun 30, 2022 · Definition. Sources. Liquid assets are assets that can be converted quickly to cash. Learn how these assets work, how to calculate them, and why they're important in financial analysis.
People also ask
How are liquid assets reported on a balance sheet?
What are examples of liquid assets?
What is a liquid asset?
Is a liquid asset a cash equivalent?
What is the most liquid asset on a balance sheet?
Are liquid assets a part of your net worth?
Dec 22, 2020 · Liquidity is a measure companies uses to examine their ability to cover short-term financial obligations. It’s a measure of your business’s ability to convert assets—or anything your company owns with financial value—into cash. Liquid assets can be quickly and easily changed into currency.
Ad
related to: what are liquid assets on a company balance sheet that will be usedGet A Free Guided QuickBooks® Setup. Automatically Track All Your Income And Expenses. Track Everything In One Place. Explore The #1 Accounting Software For Small Businesses.
