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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
- 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.
Learn about liquid assets and how they can help improve your financial stability. Ramp explains what liquid assets are and how to calculate your liquid net worth.
Liquid assets ensure a company’s ability to meet its immediate financial obligations and operating expenses. In addition, the assets serve as the company’s protection from unforeseen adverse events, such as a recession or a sudden decline in demand for the company’s products or services.
Jun 8, 2022 · <?xml encoding="utf-8" ?> Meaning of Liquid Assets. Liquid assets are those assets that are equivalent to or as good as cash. In other words, these are assets, the conversion of which into cash is easy and quick. The faster and easier the possibility of conversion, the more liquid that asset is.
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.
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Jul 19, 2022 · Liquidity is important as it indicates whether there will be the short-term inability to satisfy debts or make agreements whole. Understanding Financial Liquidity. Assets like...
