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What Is An Example Of A Liquid Asset. In terms of liquidity, cash is king since cash as The stock market is an example of a liquid market because of its large number of buyers and sellers which results in easy conversion to cash. Net worth is the total value of an individual's or entity's assets, minus the total liabilities.
Cash or any asset that can be converted into cash quickly, with little or no loss in value.
Inventory and prepaid expenses cannot be converted to cash within a very short period of time.
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They are also referred to as Quick Assets. A liquid asset is cash on hand or an asset that can be easily converted to cash. Definition: An asset is said to be liquid if it is easy to sell or convert into cash without any loss in its value.