Assets, liquid

Updated: Aug 20, 2021

An accounting term referring to those assets of a business concern which are represented by cash or near cash (e.g. money at call and at short notice), trade debtors, short-term bills, etc. Liquid assets are important in the calculation of liquid ratios and should be distinguished from current assets, which are a combination of liquid assets and work-in-progress, etc.

Reference: The Penguin Business Dictionary, 3rd edt.

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