What are Quick Assets?

Quick assets are assets that can be quickly converted into cash.

For example, a business has $50,000 in cash, $80,000 in accounts receivable, $20,000 in marketable securities, and $150,000 in inventory. Its quick assets total $150,000 (excluding inventory), which a lender uses to calculate the quick ratio and assess liquidity without relying on inventory liquidation.

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