This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Liquid Assets calculation: Cash + Receivables + Short-Term Investments.
Example: The Round Number CompanyCash = 20; Receivables = 40; Short-term Investments = 6 Quick Assets = 20 + 40 + 6 = 66 |
Liquid Assets include the Current Assets that can quickly (and easily) be converted to cash.
Also called Quick Assets.
See discussion at Liquidity Ratios.
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Calculator for Liquid Assets or Quick Assets
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The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.