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What term refers to the relative ease of converting assets into cash?
Wiki User
∙ 11y ago
liquidity
Wiki User
∙ 11y ago
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Why is the distinction between current and non current assets important when preparing financial statements?
Current Assets refers to Assets which are immediately convertable to cash (liquidated). This includes Cash, Supplies, and anything else that may be easy to sell. Non-current Assets refers to assets which are more difficult to liquidate, like Land.
What is the difference between current assets and quick assets?
Current Assets should be convertible into cash in the coming year. Quick assets are cash or are easily converted into cash (no liquidity or marketability issues).
What assets are easily convertable into cash among current assets and liquid assets?
Marketable securities are those assets which can easily convert to cash when the need arise to convert them.
In investing what does the term cash-on-cash mean?
In the investment world, cash on cash refers to the before tax cash flow and it is relative to the entire amount of cash a person has invested. It is generally only relevant when the owner of an invested asset derives income from the asset that they own.
What are the examples of current assets?
Current assets are those which are held for less than 1 year.Examples of current assets are:1. Cash2. Accounts receivable3. Notes receivable
What is the meaning of funds mobilization?
Converting your bonds, stocks and liquid assets to cash
Are investments that are not easily converted into cash considered liquid?
No, "liquid" assets and investments are those MORE EASILY converted into cash. The term "liquidity" refers to the relative ease and speed with which investments can be "liquidated" (turned into cash or its equivalent), either to remain cash or be placed into another investment.
Why is the distinction between current and non current assets important when preparing financial statements?
Current Assets refers to Assets which are immediately convertable to cash (liquidated). This includes Cash, Supplies, and anything else that may be easy to sell. Non-current Assets refers to assets which are more difficult to liquidate, like Land.
Refers to the ease with which you can convert assets to cash without serious loss?
Liquidity
What are liquid assets?
Liquidity is a business, economics or investment term that refers to an asset's ability to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value. Money, or cash on hand, is the most liquid asset. Liquidity also refers to a business' ability to meet its payment obligations, in terms of possessing sufficient liquid assets, and to such assets themselves. Total liquid assets refers to the net assets that a business owns that can be converted into cash when required.
What does it mean to liquidate something?
To liquidate is to turn something into cash or money. In financial terms liquidating assets refers to the sale of stocks or shares for cash. Many companies have liquidation sales, where the company wishes to turn all their stock at hand and tangible assets into cash.
What is the difference between current assets and quick assets?
Current Assets should be convertible into cash in the coming year. Quick assets are cash or are easily converted into cash (no liquidity or marketability issues).
Are fixed assets a liability?
Fixed assets are not liabilities, they are assets that can not be quickly liquidated (turned into cash). If the company goes under, fixed assets would be difficult assets to get cash for.
What assets are easily convertable into cash among current assets and liquid assets?
Marketable securities are those assets which can easily convert to cash when the need arise to convert them.
In investing what does the term cash-on-cash mean?
In the investment world, cash on cash refers to the before tax cash flow and it is relative to the entire amount of cash a person has invested. It is generally only relevant when the owner of an invested asset derives income from the asset that they own.
What is the definition of coffer in legal terms?
It normally refers to the assets held by a corporation, government agency or municipality including but not limited to cash on hand.
What are the examples of current assets?
Current assets are those which are held for less than 1 year.Examples of current assets are:1. Cash2. Accounts receivable3. Notes receivable
