Our small business accountants in Melbourne explain what a monetary asset is
A monetary asset is a valued instrument that holds a set price amount, like cash. Our small business accountants in Melbourne will go into further detail and explain its use.
Just like it was stated above, it is an asset whose value is stated or converted into a fixed amount of cash. An example of this would be $10,000 of cash would still be considered $10,000 of cash a year from now. The different types of monetary assets include:
A monetary asset can be more tightly defined into something that cannot be readily converted into cash, such as notes receivables and long-term loans. On the other hand though, if these monetary assets are in an inflationary environment, their cash value will decline over time unless they are appreciating assets that provide returns matching or exceeding the rate of inflation. Our accountants for small businesses in Melbourne, have all the knowledge to determine whether or not your asset is monetary or non-monetary.
Feel free to contact our small business accountants in Melbourne for all your accounting needs.