inventory is most liquid assets coz be save our product in this type. and we have no many solution to purchase our products due to our own reasons like damged something or expired thats why we have not some idea to concave our vission obout this
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.
account receivable and inventory
inventory
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.
Yes, quick ratio only incorporates those assets which immediately can be converted into cash like cash, marketable securities etc. and not included debtors or inventory
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.
For companies that are financial institutions (banks), and insurance companies, Marketable Securities are a significant portion of their income. Depending on the industry of other companies, this line item on the Balance Sheet should be relatively small. For example, manufacturing companies might have some Marketable Securities, but this figure should pale in comparison to their inventory, and plant, property and equipment figures.
account receivable and inventory
inventory
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.
Yes, quick ratio only incorporates those assets which immediately can be converted into cash like cash, marketable securities etc. and not included debtors or inventory
Remember that assets are property that is owned by a business. I believe your answer would be B the way I am understanding how you laid your question out. Assets is cash accounts recievable supplies prepaid rent equipment under your balance sheet.
a. inventory
Quick ratio is very important to assess the liquidity condition of company as compare to current liabilities, so that in case of emergency repayment or cash required how much money can be arrange by selling current assets like marketable securities or inventory etc.
Assets:Assets are those items which are utilized by company to earn profit in business cycle.Fixed Assets:Fixed assets are those items the benefits of which have been taken by company for more than one fiscal year like land, building, machinery etc.Current Assets:Current assets are those assets the benefit of which is received or receivable by company in only one fiscal year to earn profit like, cash in hand, marketable securities, inventory, debtors etc.
A secured working capital loan is based upon the value of the assets securing the loan. It depends on the type of the asset. For example, a lender might make a loan based on 70% of a borrower's eligible accounts receivable and 50% of the value of the borrower's eligible inventory. Those percentages will vary based upon what the lender perceives as its risk. For example, if the inventory consists of highly perishable products or products that will become rapidly obsolete, a lender may only be willing to 40% or less based on the value of the inventory. If the accounts receivable all are from A+ customers with good payment histories, a lender might be willing to loan up to 80% of the accounts receivable.Not all accounts receivable or inventory is "eligible." In other words, some accounts receivable and inventory are excluded from the calculation of eligible accounts receivable and inventory. In the case of accounts receivable, the definition of eligible accounts receivable will often exclude, among other factors:accounts receivable that are already past due by a certain amount of timeaccounts receivable that exceed an account debtor's credit limitaccounts receivable from affiliates of the borroweraccounts receivable from account debtors who are in bankruptcyaccounts receivable from account debtors located in a foreign jurisdictionSimilarly, eligible inventory will often exclude inventory that is slow-moving or obsolete.
Assets in Accounting is all cash, accounts receivable, inventory, merchandise, property, equipment that is owned by a business and/or company.According to investorwords.com the meaning of Assets in Accounting is...Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property.