{"id":38014,"date":"2023-10-24T14:41:24","date_gmt":"2023-10-24T14:41:24","guid":{"rendered":"https:\/\/swoopfunding.com\/za\/?post_type=business-glossary&p=38014"},"modified":"2025-04-24T14:47:21","modified_gmt":"2025-04-24T14:47:21","slug":"quick-assets","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/za\/business-glossary\/quick-assets\/","title":{"rendered":"Quick assets"},"content":{"rendered":"

Definition<\/h3>\n

Quick assets, also known as liquid assets or current liquid assets, refer to a company’s most readily convertible and easily marketable assets<\/a> into cash within a short period, typically within one year or less. <\/span><\/p>\n

What are quick assets?<\/h3>\n

They are a subset of current assets<\/a>.<\/span><\/p>\n

The main components of quick assets typically include:<\/span><\/p>\n

    \n
  1. Cash<\/b>: This is the most liquid asset, representing physical currency and funds held in bank accounts.<\/span><\/li>\n
  2. Cash equivalents<\/b>: These are highly liquid investments that are easily convertible to known amounts of cash and have a short maturity period<\/span><\/li>\n
  3. Accounts receivable<\/b>: These are amounts owed to a company by customers for products or services that have been delivered but not yet paid for.\u00a0<\/span><\/li>\n<\/ol>\n

    Quick assets are essential in assessing a company’s liquidity<\/a> and ability to meet its short-term obligations. \u200b<\/span><\/p>\n

    Example of quick assets<\/h3>\n

    Company XYZ’s balance sheet shows the following assets:<\/p>\n

      \n
    • Cash: R50,000<\/li>\n
    • Marketable securities: R30,000<\/li>\n
    • Accounts receivable: R20,000<\/li>\n
    • Inventory: R40,000<\/li>\n
    • Prepaid expenses: R10,000<\/li>\n<\/ul>\n

      To calculate the quick assets, we exclude inventory and prepaid expenses since they are not easily convertible into cash:<\/p>\n

      Quick assets = R50,000 + R30,000 + R20,000 = R100,000<\/p>\n

      In this example, Company XYZ’s quick assets total R100,000, which represents the amount of assets that can be quickly converted into cash to meet short-term obligations or unexpected expenses.<\/p>\n","protected":false},"author":1,"template":"","class_list":["post-38014","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"

      Definition Quick assets, also known as liquid assets or current liquid assets, refer to a company’s most readily convertible and easily marketable assets into cash within a short period, typically within one year or less. What are quick assets? They are a subset of current assets. The main components of quick assets typically include: Cash: This is the most liquid asset, representing physical currency and funds held in bank accounts. Cash equivalents: These are highly liquid investments that are easily convertible to known amounts of cash and have a short maturity period Accounts receivable: These are amounts owed to a…<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/za\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/business-glossary\/38014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/media?parent=38014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}