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  1. Jan 22, 2023 · A restricted asset is cash or another item of monetary value that is set aside to use for a particular stated purpose, primarily to satisfy regulatory or contractual requirements. Restricted ...

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  2. Jun 27, 2024 · An example of a liquid asset is money market holdings. Money market accounts usually do not have hold restrictions or lockup periods (i.e. you are not permitted to sell holdings for a specific ...

  3. Sep 16, 2024 · Impact on Financial Ratios. The presence of restricted cash can significantly influence a company’s financial ratios, which are key indicators used by investors, analysts, and creditors to assess financial health. One of the most affected ratios is the current ratio, which measures a company’s ability to meet its short-term obligations.

  4. Nov 19, 2020 · Restricted cash is classified as either a current asset, which is used up within one year, or a non-current asset, which are long-term assets. As a result, if the restricted cash is expected to be ...

    • 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.
  5. Jan 16, 2024 · The implications of restricted cash are significant for financial strategy, influencing how organizations plan their expenditures and investments. Understanding these restrictions is essential for stakeholders to accurately assess a company’s liquidity and financial health. As companies navigate through various financial obligations and ...

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  7. Jul 30, 2024 · Getty. Liquid assets include cash and other assets that can quickly be turned into cash without losing value. You always want some of your assets to be liquid in order to cover living expenses and ...

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