A liquid asset is one which can be easily and quickly converted into cash without loss.Please tell me if the term 'illiquid company' is better than 'liquid'.
Non-liquid companies are unable to pay their taxes.
Illiquid companies are unable to pay their taxes.
I regard this as quite a common error, Cuchu. Maybe you could sell your house to your neighbour, 'quickly and easily', for $100. That fact alone would not make it a liquid asset. The condition that the conversion should be without loss, is surely necessary. It is standard in all the definitions of liquidity I have seen, in serious writers.Perhaps U.S. and English or Southwest France accounting terminology is distinct, but where I am a liquid asset is one "which can be easily and quickly converted into cash", or it is cash already. The question of loss on conversion has nothing to do with liquidity.