Mr Potato Head I Made you! Theres no batteries in my back. I show you iggas how I move (Move Echo). 50 aint gangsta. Lloyd Banks aint gangsta. Yayo aint gangsta. Young Buck you know you aint gangsta. (Phat Rat talks). G-G-G-G-G....
Liquid assets are accounts or securities that can be easily converted to cash at little or no loss of value. These include cash, money in bank accounts, money market mutual funds, and US Treasury bills. Actively traded stocks, bonds, and mutual funds are liquid in the sense that they are easy to sell, but the price is not guaranteed and could be less than the amount you paid to buy the asset. In contrast, selling fixed assets, such as real estate, usually requires time and negotiation.
Money in our bank account is an asset. It's a very liquid asset because we can spend it right now. A building we own is an asset too because it has value - but it's not very liquid. We'd have to sell it (or borrow money against it) in order to use the value to spend it. But we still own it - so it's an asset. Money other people owe us is an asset. The more likely they are to pay us, the better the asset. It's not liquid either because we can't spend money we didn't get yet. Some assets decline in value over time - like your car. The more you drive it, the less it's worth.