WebApr 7, 2024 · Inventory is a current asset because it can be converted into cash within one year. Current Asset. It is an asset that a company holds and can be easily sold or consumed and further lead to the conversion of liquid cash. It is an important factor as it gives them a space to use the money on a day-to-day basis and clear the current business ... Web2) Long term assets having no physical existence but, possessing a value are called a) Intangible assets b) Fixed assets c) Current assets d) Investments 3) The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as a) Current assets b) Fixed assets c) Intangible assets d) Investments
Understanding Liquidity and How to Measure It - Investopedia
WebApr 14, 2024 · Here are three important items to take into consideration when making this decision: • Maintain Your Liquidity: Purchasing land requires a huge capital investment. Once the cash is spent, you lose your ability to act quickly on future needs and investment opportunities. Liquidity is how quickly your assets can be converted to cash. WebSolution. An asset which can be converted into cash immediately. - Liquid Asset. Explanation: Those assets of the business that can be converted into cash immediately … gyakie \u0026 omah lay - forever remix mp3
What Is a Liquid Asset, and What Are Some Examples?
WebDec 31, 2012 · Cash or an asset that can be easily and quickly converted to cash is called: A. a liquid asset. B. a budget excess. C. selling capital. D. investing. E. income. A liquid asset can be converted to cash quickly without significantly impacting the asset's value. Which of the following asset classes is generally considered to be the most liquid? a. WebMay 27, 2024 · Quick assets refer to assets owned by a company with a commercial or exchange value that can easily be converted into cash or that is already in a cash form. … WebCurrent assets are assets that can be converted into cash within one fiscal year or one operating cycle. Current assets are used to facilitate day-to-day operational expenses and investments. As a result, short-term assets are liquid meaning they can be readily converted into cash. Hence, current assets which get converted into cash within one ... gyakie \u0026 omah lay forever