Is Petty Cash a Current Asset? FAQs
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 petty cash is capable of providing an economic benefit as is, it is always considered a current asset.
Petty cash is normally recorded as an asset account on the balance sheet with a debit entry and credited when it’s spent or replenished.
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.