What are cash and other current assets that can be converted quickly to cash known as?

The term used to describe cash and other current assets that can be converted quickly to cash is liquid assets. Liquid assets are those that can be easily and quickly converted into cash without a significant loss in value. This includes cash itself, as well as items like marketable securities and receivables, which are expected to be collected within a short time frame.

Liquid assets are crucial for a business, as they provide the necessary cash flow to meet immediate obligations. The concept reflects a company's ability to quickly respond to short-term financial needs and ensures financial stability. Understanding liquid assets helps in evaluating a company's short-term financial health and liquidity position.

Current liabilities refer to the obligations that the company needs to settle within a year and are not related to assets. Quick assets specifically refer to those assets that can be converted into cash quickly, excluding inventories, but the broader term liquid assets encompasses all assets that are easily converted to cash. Working assets generally refer to the assets used to support business operations, which may not solely focus on liquidity.