Liquid assets

What are liquid assets?

Liquid assets are the cash and short-term investments that can be easily and quickly converted into cash. It includes cash, cheques, savings accounts, cash reserves and short-term investments with maturity of less than 90 days. Cash is considered an important measure of a company’s financial health and is needed to pay daily operational costs, make investments and meet any unexpected expenses. Cash can be managed through cash management techniques and strategies to improve efficiency and reduce risk.