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Jan 22, 2023 · An asset's liquidity is a function of how easily it can be converted into cash. In corporate finance, liquid assets are those that can be used to pay off debts in a hurry. The most common examples ...
- 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.
Oct 14, 2023 · Employees are considered valuable assets for a company rather than liabilities because they are pivotal in driving purpose, motivation, and performance within the organization. “When the reward is the activity itself – deepening learning, delighting customers, doing one’s best – there are no shortcuts.”. Daniel H. Pink.
This is why a well-balanced financial portfolio usually includes liquid and non-liquid assets, allowing for long-term growth while maintaining flexibility for short-term needs. A key takeaway from this distinction is that individuals and businesses should not rely solely on fixed assets for financial security.
Dec 18, 2023 · Why Liquid Assets Matter. Liquid assets are the lifeblood of daily operations. They are what you use to pay off short-term financial obligations, such as accounts payable, wages, and other immediate expenses. The more liquid assets a business has, the more financial flexibility it possesses.
Dec 24, 2022 · Reasons employees are considered invaluable assets. 1. Essential to providing goods or services. Improving employee efficiency and performance are major priorities for an organization. Employees ...
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Sep 12, 2023 · Liquidity is essential to meet bills and obligations on time. Having enough cash or liquid assets ensures that you can make your rent, mortgage, utilities and other important payments without defaulting. For businesses, it is important to pay suppliers, employees and other business obligations on time to maintain a good reputation.
