[Solved] The assets which can be converted into cash within the short (2024)

FAQs

[Solved] The assets which can be converted into cash within the short? ›

A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities.

The correct answer is Liquid Assets. The assets which can be converted into cash within the short period of time is called as Liquid Assets. Examples of liquid assets may include cash, cash equivalents, money market accounts, marketable securities, short-term bonds, or accounts receivable.

Liquid assets refer to cash on hand, cash on bank deposit, and assets that can be quickly and easily converted to cash. The common liquid assets are stock, bonds, certificates of deposit, or shares.

Current Assets is an account on a balance sheet that represents the value of all assets that could be converted into cash within one year. Cash equivalents are highly liquid investment securities that can be converted to cash easily and are found on a company's balance sheet.

Current assets are those assets which can be converted into cash or can be used to pay off liabilities within a time span of 12 months, i.e. one year. Some of the examples of current assets are cash, cash equivalents, inventories, debtors, bills receivables, etc.

Liquidation sales and auction sales are two of the most commonly used ways to recover assets. A liquidation sale is a process of selling assets in an orderly manner over a period of time, with the goal of realizing higher values that are closer to fair market price.

Noncurrent assets are a company's long-term investments, and cannot be converted to cash easily within a year. They are required for the long-term needs of a business and include things like land and heavy equipment.

Current assets include cash and other assets that can be easily converted to cash within a 12-month period. Examples include money market accounts, inventory, securities and accounts receivable.

Examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds and Treasury bills. These investments are typically high-quality and highly liquid assets or investment vehicles.

Solution: Approximately the assets that can be converted into cash within a very short period are known as current assets. Current assets consist of cash equivalent, stock, cash, marketable securities, and other liquid assets.

What asset is something that can be converted to cash quickly without losing value? ›

Liquid assets refer to any assets that can be readily converted to cash without losing any or much of the market value.

A liquid asset is defined as a type of asset that can quickly and easily be converted into cash while retaining its market value. Liquid assets are a particularly important safeguard to have if you experience financial hardship and need cash fast.

Liquidation sales and auction sales are two of the most commonly used ways to recover assets. A liquidation sale is a process of selling assets in an orderly manner over a period of time, with the goal of realizing higher values that are closer to fair market price.