Is a liquid asset a cash equivalent?

Liquid assets are often viewed as cash, and likewise may be called cash equivalents because the owner is confident the assets can easily be exchanged for cash at any time. Generally, several factors must exist for a liquid asset to be considered liquid. It must be in an established, liquid market with a large number of readily available buyers.

What does it mean to liquidate a property?

To liquidate means to convert assets into cash. For example, a person may sell their home, car, or other asset and receive cash for doing so. This is known as liquidation. Many assets are assessed based on how liquid they are.

What does it mean to liquidate a bank account?

To liquidate is to sell assets for cash, often quickly. Liquidation may be voluntary to increase one's cash position or de-risk, or else forced such as by a margin call in a brokerage account or by a bankruptcy judge in the case of insolvency.

When does unliquidated debt become liquidated?

Unliquidated debt becomes liquidated when the final amount owed is determined, whether by agreement between the parties or by court order. The amount of the debt is known. The amount of the debt is unknown. Both parties agree as to the amount of the debt.