Are "trading assets" and "deferred tax assets" considered quick assets? Thanks.

To determine if "trading assets" and "deferred tax assets" are considered quick assets, we need to understand what quick assets are and how they are generally defined.

Quick assets, also known as liquid assets or current assets, are the assets that can be easily converted into cash within a short period, typically within one year. They are an important measure of a company's ability to meet its short-term obligations.

Quick assets typically include:

1. Cash: Physical cash, such as money in bank accounts or petty cash on hand.
2. Cash Equivalents: Highly liquid investments that are readily convertible into cash and have a short maturity period, typically within three months. Examples include Treasury bills, money market funds, and short-term certificates of deposit.
3. Short-term Marketable Securities: Investments that can be easily sold on the market to generate cash quickly. Examples include stocks, bonds, and mutual funds with maturities of less than one year.
4. Accounts Receivable: Money owed to the company by its customers for sales of goods or services on credit terms.
5. Inventory: Products or materials that the company plans to sell in the ordinary course of business.

Now, let's assess whether "trading assets" and "deferred tax assets" can be considered quick assets:

1. Trading Assets: Trading assets are investments that are bought and sold frequently to generate short-term profits. These may include stocks, bonds, commodities, or derivatives. While trading assets can be liquid and readily convertible into cash, they are generally classified as investment assets and not quick assets.

2. Deferred Tax Assets: Deferred tax assets represent potential tax benefits that a company may enjoy in the future as a result of temporary differences between the carrying value of assets and liabilities for accounting purposes and their tax values. They arise when a company pays more in taxes based on accounting rules than it owes based on tax rules.
Deferred tax assets are typically not considered quick assets because they do not represent cash or assets that can be easily converted into cash within a short period. They are intangible in nature and would require the occurrence of certain events or the ability to generate taxable income in the future to be realized.

In conclusion, the terms "trading assets" and "deferred tax assets" are not usually considered quick assets. Quick assets generally consist of cash, cash equivalents, short-term marketable securities, accounts receivable, and inventory.