• A liquid asset is an asset that can be easily converted into cash within a short period of time.
  • Liquid assets tend to have liquid markets with a high level of demand and security.
  • Enterprises account for liquid assets as part of the current assets of their balance sheet.
  • Business assets are usually broken down using quick and current ratio methods to analyze types of liquidity and solvency.
  • Examples of liquid assets may include cash, cash equivalents, money market accounts, marketable securities, short-term bonds or receivables.