What is quick asset?

Quick asset generally refers to an asset that can be easily converted into cash. These assets are highly liquid and are usually held by individuals or businesses to cover short-term financial needs or emergencies.

Examples of quick assets may include:

1. Cash: The most liquid asset, readily available for immediate use.
2. Marketable Securities: Investments such as stocks, bonds, or mutual funds that can be easily bought or sold in the financial market.
3. Accounts Receivable: Money owed to a business by its customers for goods delivered or services rendered.
4. Inventory: Goods or products that a business holds for sale, which can be quickly sold.
5. Short-term Investments: Financial instruments with a maturity period of less than one year, such as certificates of deposit or treasury bills.

Quick assets are important for businesses to ensure they have enough liquidity to meet their short-term obligations, such as paying bills or covering operational costs. Having a higher proportion of quick assets to total assets can also indicate a company's financial stability and ability to weather financial downturns.