Liquid Assets

Definition

  • Assets in the form of cash or personal property that is easy to convert to cash. Real estate is an example of a liquid asset.

Synonyms
liquid property, cash, liquid goods

Related Terms and Acronyms

  • Acid-Test Ratio Definition,
    • A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.
  • Asset Definition,
    • Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
  • Collateral Definition,
    • Any property pledged as security for repayment of a debt.
  • Illiquid Asset Definition,
    • An asset that cannot be sold easily or in a timely manner for its full value.
  • Intangible Asset Definition,
    • Non-physical resources or rights to other assets. Patents, goodwill, permits and computer programs are examples of intangible assets.
  • Intangible Property Definition,
    • Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
  • Liquidation Definition,
    • To convert into cash.
    • The practice of selling or redistributing some or all of a business's assets in order to repay debts or pay investors if the business becomes insolvent or is sold in full or in part.
    • To settle the outstanding debts by selling property.
  • Liquidity Definition,
    • The ability to convert assets to cash quickly, without significant losses.
  • Loss Reserve Definition,
    • A reserve of money and liquid assets set aside by an insurer for the payment of claims that have been submitted but have yet to be paid out.
  • Non-liquid Asset Definition,
    • A possession that can't be transformed readily into cash. Stocks and bonds are liquid assets because they can be sold easily; a house is a non-liquid asset because it takes time to sell.
  • Parking (prk) Abbreviation,
    • A term that refers to depositing cash in a high-yield money market account until it is transferred to another account to pay bills.
  • Quick Assets (QA) Acronym,
    • Assets that can be liquefied quickly without a loss.
  • Quick Liquidity Ratio Definition,
    • A metric used to find if a company has enough liquidity to make it's short term financial obligations.
  • Receivership Definition,
    • A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.
  • Solvency Definition,
    • To be able to meet one's financial liabilities in the short or long term.
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