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, liquid goods, cash

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,
  • 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 convert into cash.
  • 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.