Question

Which asset are subtracted from current asset to find liquid assets

Answer 1

Answer:

Current assets consist of cash and similar assets (savings/checking accounts, deposits becoming liquid in three months or less), marketable securities and accounts receivable. From there, the summation is divided by the company's current liabilities expected to be paid in 12 months.

Explanation:

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Answer 2

Answer:

Stocks and prepaid expenses are subtracted from current assets to find the liquid assets.

Explanation:

• A liquid asset is an asset that can easily be converted into cash in a short amount of time.
• Liquid assets include things like cash, money market instruments, and marketable securities.
• Both individuals and businesses can be concerned with tracking liquid assets as a portion of their net worth.
• Liquidity describes your ability to exchange an asset for cash. The more liquid it is, the easier it is to convert an asset into cash.
• Examples: Cash or currency. A bank checking or savings account. Stocks, bonds, funds, and other investments.
• It is calculated by subtracting the sum of stocks and prepaid expenses from the current assets.

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