What is an example of a liquid asset?

Examples Of Liquid Assets. Liquid Assets are the business assets that can be converted into cash within a short period, such as cash, marketable securities, and money market instruments. They are recorded on the asset side of the company's balance sheet. read more

What is the difference between liquid assets and non-liquid assets?

While liquid assets can be easily sold for cash and have a stable market price, non-liquid assets cannot be quickly sold for cash and prices can be much more volatile. In general, anything that can be owned by an individual or entity that has, or is expected to have economic value, is an asset. The value of an asset is often taxed.

How are liquid assets reported on a balance sheet?

For the purposes of financial accounting, a company’s liquid assets are reported on its balance sheet as current assets. A liquid asset is an asset that can easily be converted into cash within a short amount of time. Liquid assets generally tend to have liquid markets with high levels of demand and security.

Are equitable stocks a liquid asset?

Since securities can be quickly sold through electronic markets at complete market prices while in demand, equitable stocks under correct circumstances are liquid. Cash on hand is taken as a liquid asset since it can be quickly accessed. Since cash is considered a legal tender, any firm may utilize it to resolve its existing liabilities.