Accounting
Which of these assets are "quick assets"?
-Cash and cash equivalents
-Short-term investment
-Trading assets
-Accounts receivable
-Inventories
-Deferred tax assets
-Other current assets
I am thinking "cash and cash equivalents" and "accounts receivable" are, but I'm not sure about the rest. Could someone help me? Thank you.
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Answers
Yes, cash and cash equivalents and accounts receivable are quick assets. These are assets that are either liquid or quickly liquidated - that is, converted into cash - in order to fund short-term expenses or operations. Short-term investments, trading assets, inventories, and other current assets, however, cannot be as quickly converted into cash and therefore are not considered quick assets.
