Legal Definitions - near money

Near money refers to assets that can be easily converted into cash, such as marketable securities, notes, or accounts receivable. These assets are considered current assets because they are expected to be converted into cash within the next 12 months or the normal operating cycle of a business. Near money is also known as liquid asset, quick asset, or financial asset.

Examples of near money include:

• Marketable securities
• Money market accounts
• Certificates of deposit (CDs)
• Treasury bills
• Accounts receivable

These examples illustrate how near money can be easily converted into cash. For instance, marketable securities can be sold quickly to raise cash, while accounts receivable can be collected from customers to generate cash. Near money is important for businesses because it provides them with the flexibility to meet their short-term financial obligations.