Assets which are readily convertible into cash are termed as
Question 1 Report
Assets which are readily convertible into cash are termed as
Answer Details
Assets which are readily convertible into cash are called liquid assets.
Liquid assets are those assets that can be easily and quickly converted into cash without a significant loss in value. Examples of liquid assets include cash, stocks, bonds, and short-term investments.
The term "liquid" refers to the ability to convert the asset into cash quickly and without incurring significant transaction costs. In contrast, fixed assets such as property, plant, and equipment are not easily converted into cash, and their value is generally tied to their intended use.
Having a sufficient amount of liquid assets is important for individuals and businesses alike, as they can be used to cover unexpected expenses or take advantage of investment opportunities.
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