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Is a loan a liquid or illiquid asset?

Updated: 9/19/2023
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11y ago

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liquid assets

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11y ago
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Q: Is a loan a liquid or illiquid asset?
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Related questions

What does illiquid mean?

illiquid means not liquid il means not + liquid = illiquid. :-)


Is property an illiquid asset?

yes


What is liquidity in accounting?

Liquidity is the ability of the business to pay immediate debts. Cash at bank and cash in hand are perfect liquid assets. Debtors are near liquid and closing stock is an illiquid asset.


What is an illiquid asset category?

An Illiquid asset is one that cannot be sold immediately in return for cash and there will always be some time lapse between the point where you want to sell it to the point where you actually receive the cash. For Ex: Real Estate is an example. You may decide to sell your house today but you may find a prospective buyer and get cash only after a few days or even weeks. Cash is the most liquid asset and then come government bonds and other debt instruments and so on.


Is liquid an adjective?

Yes. Liquid is a noun and an adjective. (There is also a negative, illiquid, for some uses.)


Is inventory a fix cost or variable cost?

inventory (i.e. stock) is an asset, not a cost. It is considered a current asset, however may be illiquid depending on the product


Are government agency bonds more liquid than municipal bonds?

No and Yes, Their are liquid and illiquid issues in both


Is land a liquid or non liquid asset?

is land a liquid asset


Are sundry debtors a liquid asset?

liquid asset


Is a bank loan a financial asset?

Bank loan is a liability for business not an asset for business.


Which is the least liquid asset?

inventory is our least liquid asset.


Why is a bank loan a financial asset?

The only way that a bank loan can be an asset is if the loan is less than what the assett is worth. Otherwise I do not belive a bank loan can be an assett. Answer 1: A Bank loan is an asset for the bank because it is money that a customer will repay. Any instrument in which money will be received can be considered an asset. In case of a loan, it is an asset to the bank and a liability to the person who borrowed the money