Liquid assets Examples

Liquid assets are those which can be converted into cash quickly and easily which implies that if a company wants money at short notice then it can use these and resolve the cash crunch problem. Given below are some of the liquid assets examples –

  1. Debtors – They represent those person or companies who have taken goods from the company on credit and have not paid for the goods purchased hence they are considered as debtors
  2. Bills Receivables – It is a document given by the debtors to the company promising to pay the amount which is due on a specified date.
  3. Cash in Hand – It represents the free available cash which is lying with the firm in the office or at some other place earning no interest.
  4. Cash at bank – It represents that cash which is lying in the bank account of the firm; it may be in the saving or current account of the firm.
  5. Short term investments – All companies do investments because no company would want idle cash in the books, however if the company does not want to lock its funds then they go for short term investments which can be liquidated quickly like gold, mutual fund, treasuries etc…
  6. Accrued income – Sometimes organization complete the work but they are not paid instantly rather they are paid after some time and such payments which the company receive after sometime are called accrued incomes.

0 comments… add one

Leave a Comment

Related pages

define unsystematicautonomous demand and derived demandadvantages and disadvantages of variable costingmain features of globalisationdisadvantages of privatisationdisadvantages of centrally planned economymarket economy strengths and weaknessesdictatorship advantages and disadvantagesmarginal costing systemdiscounted cash flow advantages and disadvantageswhat are fictitious assetsexamples of products with elastic demanddisadvantages of price skimmingwhat are the drawbacks of democracycurrent liabilities examples balance sheetcibil formdrawbacks of venture capitalcarriage inwards definitionconglomerate diversificationdisadvantages of industrializationpenetration marketing strategyadvantages and disadvantages of paybackbenefits of a mixed economydistinction between shares and debenturesdevalutionhow to comment on profitability ratiosdisadvantages of international trade for developing countriescommand economy disadvantagesdefinition monopolistic competitionconservatism principle in accountingcash inflows examplesexample of substitution effectskimming marketing strategyhorizontal merger examplemeaning of cost push inflationexample of explicit costautocratic leadership characteristicssystematic and unsystematic risk examplesexamples of accounting conventionsdisadvantages of inflation accountingskimming penetrationjob costing advantagesexamples of elastic goodspenetration pricing definitionglobalization disadvantageexamples of primary industryaccounting materiality principleconglomerate diversification meaninglaws of diminishing returnsconsignee consignorsubstitute effect and income effectadvantages and disadvantages of budgetingcurrents assetswhat is fifo method in accountingdebit the giverdefine market penetration pricingadvantages and disadvantages of borrowingconglomerate company examplesunsystematic risk exampleswhat is complementary goodswhat is vertical mergeradvantages and disadvantages of incremental budgetingformula to calculate net worth of a companyregional rural banks meaningdisadvantages of marketing segmentationadvantages and disadvantages of electronic fund transferforex reserve meaningdirect and indirect quotationwhat is a bearer chequesocialism mixed economydeclining method of depreciationadvantages of decentralized organizationcashflow advantagescarcity in economics exampleshow to fill out a checking withdrawal slipwhat is the difference between complementary and complimentaryadvantage of socialismfinal goods vs intermediate goodsdisadvantages of traditional economyadvantages of hire purchase and leasingadvantages and disadvantages market economy