Is Petty Cash a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

Yes, petty cash is a current asset. A current asset is any asset that will provide an economic benefit within one year. Petty cash refers to spending cash that a company has readily available. Because it is capable of providing an economic benefit as is, it is considered a current asset.

Is Petty Cash a Current Asset FAQs

Is petty cash considered a current asset?

Yes, petty cash is a current asset.

What is a current asset?

A current asset is any asset that will provide an economic benefit within one year.

What is petty cash?

Petty cash refers to spending cash that a company has readily available.

When would petty cash be considered a current asset?

Because petty cash is capable of providing an economic benefit as is, it is always considered a current asset.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.