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Jun 27, 2024 · 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...
Oct 14, 2024 · A liquid asset is an asset that can be readily converted to cash. This means the asset can easily be sold with little impact on its value.
- Steven Nickolas
- 2 min
A liquid asset is an asset that can be quickly sold without losing much value. Learn how liquid assets are reported on the balance sheet, why they are important for businesses and individuals, and see examples of liquid assets.
Dictionary. Partner with us. Become An Instructor. Advertise With Us. For Enterprises. Support. Contact Us. Follow us on. Guide to Liquid Assets and its definition. We explain it with examples, vs fixed assets, list of them and vs current assets.
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- 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.
Aug 8, 2024 · 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.
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...