Which of these assets are "quick assets"?

-Cash and cash equivalents
-Short-term investment
-Trading assets
-Accounts receivable
-Inventories
-Deferred tax assets
-Other current assets

I am thinking "cash and cash equivalents" and "accounts receivable" are, but I'm not sure about the rest. Could someone help me? Thank you.

Sure, I can help you with that!

Quick assets, also known as liquid assets, are assets that can be easily and quickly converted into cash within a short period of time, typically within 90 days. They are considered to be highly liquid and readily available to meet immediate cash needs.

Let's go through each of the assets you listed and determine if they are considered quick assets:

1. Cash and cash equivalents: Yes, cash and cash equivalents are quick assets because they are readily available and can be used for immediate transactions.

2. Short-term investments: It depends on the nature of these investments. If they are highly liquid and can be sold quickly without incurring significant losses, then they can be considered quick assets. Examples include Treasury bills and money market funds.

3. Trading assets: Yes, trading assets are generally considered quick assets as they are bought and sold frequently, therefore providing relatively quick access to cash.

4. Accounts receivable: Yes, accounts receivable are typically considered quick assets as they represent amounts owed to a company by its customers. However, their liquidity may vary depending on factors such as credit terms and collection policies.

5. Inventories: No, inventories are not considered quick assets because they often require time and effort to be sold and converted into cash. They may need to be processed, manufactured, or sold before the cash is realized.

6. Deferred tax assets: No, deferred tax assets are not quick assets because they represent future tax benefits that can be used to offset future tax liabilities. They cannot be easily converted into cash.

7. Other current assets: This category is quite broad and can include various types of assets. Some of these assets may be considered quick assets, while others may not. It depends on the specific nature of each asset.

In summary, the quick assets among the options you provided are:

- Cash and cash equivalents
- Short-term investments (if highly liquid)
- Trading assets
- Accounts receivable

I hope this helps clarify the distinction between quick assets and the other assets listed.