Liquid assets are those that can be swiftly, safely, and easily converted into currency. It can be readily converted into cash, like stocks, accounts receivable, and inventory. The market value of a liquid asset can be quickly and easily transformed into cash.
Several things might increase or decrease an asset’s liquidity. The most liquid asset can be cash-in-hand, followed by funds in bank accounts that may be withdrawn quickly. If your company needs a cash infusion, you can get it without having to convert any currency.
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