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:
- Cash and cash equivalents
- Temporary marketable securities
- Accounts receivable (after deducting an allowance for doubtful accounts)
Generally, inventory cannot be converted to cash quickly. Therefore, inventory is not considered to be a quick asset.