an ordinarily liquid asset – meaning one with a large number of potential buyers – may only be sellable at a loss if the seller is in a hurry to obtain cash.
Definition:A liquid asset is a resource that can easily be converted intocashand used to pay for goods and services or pay offliabilities.Assetsthat can be readily traded for goods and services are also considered to be liquid even if they can’t be converted into cash. For instance, some...
An asset that can easily be converted into cash Answer:D) An asset that can easily be converted into cash Explanation: A liquid asset is a resource that can undoubtedly be changed over into cash in a short measure of time. Fluid resources incorporate things like money, currency market instrum...
Cash is the most liquid asset and may be used to buy other assets quickly. The readiness with which an asset can be turned into cash is known as liquidity. Cash is the standard metric for determining liquidity. It is the most straightforward way to excha
Cash is a company's most liquid asset. It's essential for paying bills and taking advantage of financial opportunities. Companies receive cash from a variety of sources, including payments from customers, dividends on investments and sales of equipment and supplies, among many other sources. Most...
[translate] aCash is the most liquid asset of a business,and most business transactions begin or end with cash. 现金是事务的流动资产,并且多数经济业务以现金开始或结束。[translate]
They are considered the most liquid form of assets as they can be quickly converted into cash without significant loss in value. The key characteristic of a liquid asset is its ability to maintain its value or convertibility in a short period of time. This makes them highly preferable in ...
Since cash is the most liquid asset, it is listed first. After cash, the order is: temporary investments, accounts receivable, inventory, supplies, and prepaid expenses. Evaluating Liquidity Liquidity depends on 1) the speed at which the assets should be turning to cash, or 2) the assets’...
A liquid asset is cash on hand or an asset that can be easily converted to cash. In terms of liquidity, cash is supreme, since cash aslegal tenderis the ultimate goal. Assets that can be converted to cash quickly are similar to cash itself, and are thus also liquid. Liquid assets are...
An asset is a resource that is expected to provide a future benefit to its owner. Assets are reported on the company's balance sheet in the case of businesses. An asset may generate cash flow, reduce expenses, or improve sales. An asset can be either tangible like a piece of machinery ...