What are quick assets?

Definition of Quick Assets

Quick assets are a company's current assets which can quickly be converted into cash. Quick assets provide the liquidity necessary to pay the company's obligations when they come due.

The total of a company's quick assets is compared to the total of its current liabilities in the calculation of the company's quick ratio.

Examples of Quick Assets

Common examples of quick assets include:

Generally, inventory cannot be converted to cash quickly. Therefore, inventory is not considered to be a quick asset.