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
Yes, cash is an asset.
In accounting terms, cash is a current asset.
Cash is the first in-line item on a company’s balance sheet.
Yes, cash is a liquid asset. It is a company's most liquid asset, such that the liquidity of all other assets is compared to the liquidity of cash.
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 to realize the value.
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.
