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  1. Jun 27, 2024 · In some situations, inventory may be considered a liquid asset if it has a large market with highly visible marketplaces for a product in high demand.

    • 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.
  2. Jul 7, 2024 · Liquid asset refers to a financial resource or asset that can be converted into liquid cash quickly with minimum value on its value. Liquid assets hold an economic value for an individual, corporation, or government.

  3. Your inventory, accounts receivable, and stocks are examples of liquid assets — things you can quickly convert to hard cash. Liquidity, or your business’s ability to quickly convert assets into cash, is vital on multiple fronts.

  4. Jul 19, 2022 · In other words, inventory is not as liquid as the other current assets. A ratio value of greater than one is typically considered good from a liquidity standpoint, but this is industry...

    • Jim Mueller
  5. 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 marketable...

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  7. Jul 2, 2024 · Is Inventory a Liquid Asset? In many cases, inventory is not considered a liquid asset, because it may require a significant amount of time to find a buyer. Also, when a business is in a rush to sell its assets, potential buyers may demand a discount before they will accept delivery.

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