What type of assets are generally regarded as more liquid?

Current assets are generally regarded as more liquid because they can be quickly converted into cash or used to pay off short-term liabilities. This category typically includes cash and cash equivalents, accounts receivable, and inventory, all of which can be readily accessed or sold in the near term. The liquidity of current assets is essential for maintaining the operational cash flow of a business, enabling it to meet its immediate financial obligations.

In contrast, non-current assets, fixed assets, and intangible assets tend to have longer conversion periods to cash. Non-current assets include items such as property, plant, and equipment, which are not meant to be sold in the short term. Fixed assets, similar to non-current assets, are typically part of a company’s long-term operational needs. Intangible assets, such as patents or trademarks, also do not possess immediate cash value and can take time to realize their worth. Thus, current assets stand out in terms of liquidity due to their quick convertibility into cash.