Search results
Jun 27, 2024 · The most liquid assets are cash and securities that can immediately be transacted for cash. Companies can also look to assets with a cash conversion expectation of one year or less as...
Study with Quizlet and memorize flashcards containing terms like money liquidity, What is the most liquid asset?, List the following as extremely, fairly, or least liquid: 1. Checking account 2. stock certificate 3. Arts, antiques, Real estate, and Crypto 4. Mutual funds and corporate bonds and more.
May 18, 2024 · What Are the Most Liquid Assets or Securities? Cash is the most liquid asset, followed by cash equivalents, which are things like money market accounts, certificates of deposit (CDs), or time...
- 2 min
Jul 30, 2024 · Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset.
- 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 19, 2022 · Cash is the most liquid asset, and companies may also hold very short-term investments that are considered cash equivalents that are also extremely liquid. Companies often have other short-term...
People also ask
What are examples of liquid assets?
What is the most liquid asset in a company?
Is a liquid asset a cash equivalent?
What is a liquid asset?
What types of assets have different liquidity conversion timeframes?
What is liquid assets to net worth ratio?
Jun 27, 2024 · Cash is the most liquid asset in the world. 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.