Balance Sheet (for Liquidity)
The balance sheet is often divided into two sections: the first section shows the assets, while the second section shows the liabilities. Assets can be classified according to their liquidity, i.e. the ease with which they can be converted into cash. In this sense, the most liquid assets are those that can be converted into cash quickly and without significant losses, such as cash on hand or in the bank.
As regards liabilities, they can be classified according to their maturity: short-term liabilities are those that must be settled within one year from the date of the balance sheet, while long-term liabilities are those that must be settled after one year. 'year.