Is Cash an Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 03, 2023

Yes, cash is an asset. It is the first in-line item on a company’s balance sheet. Cash is also the most liquid asset a company has available, making it a current asset. The liquidity of cash is what the liquidity of all other assets is measured against.

Is Cash an Asset FAQs

Is cash an asset?

Yes, cash is an asset.

What is cash in accounting?

In accounting terms, cash is a current asset.

Where is cash recorded?

Cash is the first in-line item on a company’s balance sheet.

Is cash a liquid asset?

Yes, cash is a liquid asset. In fact, it is a company’s most liquid asset, such that the liquidity of all other assets are compared to the liquidity of cash.

What is an illiquid asset?

An illiquid asset can’t be easily converted to cash. Examples would be machinery, property, or supplies. While these assets hold undeniable value, they have to be sold and converted to cash in order to realize the value.

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.