The physical stock of raw materials, semi finished and finished goods as on the date of closing say 31St December or 31st March is ascertained on checking/counting that match with the book value is called closing stock
Houses are the most liquid assets
Liquid assets are those considered easy to liquidate. Such as savings, money market accounts and cash on hand. Non liquid assets are difficult to liquidate. Certificates of deposits are an example of a non liquid asset.
liquid assets
liquid
Simply answered, it means cash or assets that can quickly and easily be converted to cash.
Core current assets are the permanent current assets. These are the essential assets that an organization needs to cover routine activities. To calculate the maximum permissible bank finance, core current assets value is subtracted from the total current assets, because it is not liquid.
Current assets are assets that are likely to be converted into cash within the operating period. Another way to put it is current assets are the most liquid assets of a company. These mainly consist of the following:Cash and Marketable SecuritiesAccounts ReceivableInventoriesOther Current Assets
liquid asset can be converted into cash within a very short span of time...
Liquid assets are those assets which can immediately be converted in cash in emergancy basis so in liquid assets noramlly inventory is also not included as well as debtors.
Current assets are assets that are likely to be converted into cash within the operating period--that is the assets of the company that are most liquid. These mainly consist of the following:Cash and Marketable SecuritiesAccounts ReceivableInventoriesOther Current AssetsNon current assets are assets that are unlikely to be converted into cash, but rather items that the company will keep over a long period of time. Examples of theses are as followed:Property Plant and EquipmentIntangible AssetsOther non current assets
these ratios analyze how much cash a company has. a liquid company will have cash after its obligations are paid off. some of the ratios calculated here are:a) Current ratioCurrent ratio = Current assets / Current liabilitiesb) Quick ratioQuick ratio = Quick assets / Current liabilitiesQuick assets = Current assets - Inventoryc) Cash ratioCash ratio = Cash / Current liabilities
Marketable securities are those assets which can easily convert to cash when the need arise to convert them.
Core current assets are the essential assets, without which a company can not function. Since these assets are crucial to the survival of the company, they are usually not sold to raise cash. This implies two things. Firstly, the core current assets are not liquid and secondly, if a company is selling core current assets to raise cash, it is in dire situation or even close to bankruptcy.
Quick assets or liquid assets are those assets that can be converted into cash fairly soon... eg, accounts receivable, marketable securities, current assets excluding inventory, etc.
assets which is highly liquid or converted into cash in short duration, but floating assets is a particular assets converted into cash in short time
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.
This ratio represents the structure of assets and the amount in form of current assets per each pound invested in assets. Current assets are important to businesses because they are the assets that are used to fund day-to-day operations and pay on-going expenses and include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash.