In a general sense liquid assets refer to the immediate purchasing power of an individual. In a business context liquid assets are a subdivision of current assets and are sometimes referred to as quick current assets. They refer to that part of current assets which consists of cash or items that can be quickly converted into cash, e.g. money at call. The total of liquid assets is essential to the calculation of the liquid ratio.
|Reference: The Penguin Business Dictionary , 3rd edt.|