what are quick assets

Quick assets are assets owned by a company that can easily be converted into cash or are already in cash form. They are considered to be the most liquid assets that a company owns and are used to compute certain financial ratios that indicate a companys liquidity and financial health. Quick assets include cash and cash equivalents, marketable securities, and accounts receivable. They are different from other types of assets because they represent economic resources that can be turned into cash in a relatively short period of time without a significant loss of value. Quick assets exclude inventories because it may take more time for a company to convert them into cash. Quick assets are used to calculate the quick ratio, which measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately.