Liquid capital
Financial resources readily available for use, typically in cash or near-cash form
From Wikipedia, the free encyclopedia
Liquid capital or fluid capital is the part of a firm's assets that it holds as money.[1] It includes cash balances, bank deposits, and money market investments.
Financial reporting and liquidity analysis
In financial reporting, liquid capital is closely related to cash and cash equivalents. Under IAS 7, cash consists of cash on hand and demand deposits, while cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.[2] These assets are used in assessing a firm's ability to meet short-term cash requirements and are distinguished from less liquid assets such as inventories, fixed assets, or long-term investments.[3]
