Question

How are liquid assets different from other assets

Answer 1

Answer:

An asset can include tangible and intangible things that have future economic value for the company, machinery, cash and investments are its examples. It is divided into two categories fixed assets and liquid assets. The assets which are in cash form or can be easily converted into cash are known as liquid assets. Liquid assets include stocks and cash. While the fixed assets cannot be easily converted into cash. These assets help in generating revenue in the long run. Machines are a good example of fixed assets.

Answer 2

Liquid assets are readily available money, meaning you can access it at any time. A liquid asset is an asset that can be converted into cash quickly and with minimal impact to the price received upon conversion in the open market.