order of liquidity


The organization of assets on a balance sheet based on how long the asset will take to liquidate. For instance, cash would be listed at the top and then would be followed by any other asset that could quickly be turned into cash.

Use order of liquidity in a sentence

They reviewed their order of liquidity to determine their assets on hand and what it would take to liquidate them for a project.

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Even though ABC Company's delivery vehicles had suffered a great deal of depreciation they were listed high on the order of liquidity.

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Cash is always first in the order of liquidity on their balance sheet, since obviously it is liquid already and can be used to pay debts immediately.

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order management system (OMS) order of magnitude