Creditors may be particularly interested in indicators of liquidity, because they show the ability of a company to quickly generate the money to pay the outstanding debt
Money
it has intrinsic value
is land a liquid asset
inventory is our least liquid asset.
Liquidity is a term used to signify how easily an asset or an investment can be converted into cash. Obviously cash is the most liquid investment or asset. Real Estate could be the least liquid because finding a prospective buyer for a home will take a long time. The money in a Savings account is extremely liquid. The account holder can withdraw his money anytime he wants.
Money
The least liquid asset that most people have is their house.
it has intrinsic value
money
The least liquid asset that most people have is their house.
Balance sheet is always maintained as most liquid asset at the top, so as the cash is the most liquid asset of business that;s why it is shown right at the top before all other less liquid assets.
is land a liquid asset
liquid asset
Cash is an asset because it is the most liquid asset that is owned by a company that can be used to paid expenses or current liabilities.
Because it is the most liquid asset
inventory is our least liquid asset.
Liquidity is a term used to signify how easily an asset or an investment can be converted into cash. Obviously cash is the most liquid investment or asset. Real Estate could be the least liquid because finding a prospective buyer for a home will take a long time. The money in a Savings account is extremely liquid. The account holder can withdraw his money anytime he wants.