![]() Current assets are showed on the debit side of the financial statements whereas Liquid assets are a part of the current assets.Some examples of current assets are cash in bank, cash in hand, debtor, short-term investments, bill receivables, prepaid expenses, inventories, etc whereas Some examples of Liquid assets are cash in bank, cash in hand, cash equivalents, mutual funds, stocks, treasury bills, bonds, prepaid expenses, accrued income, Government Bonds, Marketable Securities, etc. ![]() Current assets are usually less easily convertible than the Liquid assets whereas The liquid assets are already in the liquid form or get easily converted.Current assets are those assets that are either realized or paid off within an accounting year whereas Liquid assets are those assets which can be converted into cash within a small span of time.Main Differences Between Current Assets and Liquid Assets Some examples of Liquid assets are cash in the bank, cash in hand, cash equivalents, mutual funds, stocks, treasury bills, bonds, prepaid expenses, accrued income, Government Bonds, Marketable Securities, etc. This type of asset is used by buyers or businesses. Liquid assets are a part of the current assets. They are also called short-term assets or circulating assets, circulating capital, or floating assets. The Current assets are those assets that are either realized or paid off within an accounting year. Some examples of current assets are cash in the bank, cash in hand, debtor, short-term investments, bill receivables, prepaid expenses, inventories, etc. Liquid assets can be used to highlight liabilities. The liquid assets are already in the liquid form or get easily converted.Ĭurrent assets are used to evaluate the liquidity of the company. Liquid assets are a part of the current assets.Ĭurrent assets are usually less easily convertible than Liquid assets. ![]() Liquid assets are those assets that can be converted into cash within a small span of time.Ĭurrent assets are shown on the debit side of the financial statement. ![]() Comparison Table Parameters of Comparison Liquid assets are converted into their liquid form or the cash form while keeping the market value. Liquid assets are those assets that can be converted into liquid form or cash within a small span of time. Current assets are converted into liquid form to pay off the current liabilities.
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