A liquid asset is an asset that can easily be converted into cash within a short amount of time. Liquid assets generally tend to have liquid markets with high levels of demand and security. Money is the most liquid of all assets. A liquid asset is cash on hand or an asset that can be easily converted to cash. In terms of liquidity, cash/money is supreme since cash/money as legal tender is the ultimate goal. Assets that can then be converted to cash in a short time are similar to cash itself because the asset holder can quickly and easily get cash in a transaction exchange. Liquid assets are often viewed as cash, and likewise may be called cash equivalents because the owner is confident the assets can easily be exchanged for cash at any time. Examples of liquid assets held by both individuals and businesses include Cash, Money market assets, Marketable equity securities (stocks), Marketable debt securities (bonds), Accounts receivable, Inventory, etc. Land and Furniture are fixed assets. A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. A company plans to use them over the long term to help generate income. They are also called Capital Assets.