Monetary assets are assets that can be immediately converted into money. Meanwhile, non-monetary assets, must require the first time period for disbursement. In short, monetary assets are assets that are easily cashed. This is because, monetary assets have a high level of liquidity . This level of liquidity is a measure used to describe how quickly an asset can be converted into money .
Examples of Monetary Assets
As previously understood, monetary assets are assets that are easily and quickly disbursed. The following are examples of monetary assets:
- Deposit
Deposits are term savings products issued by banks. Actually it takes a period of time to withdraw money on a deposit, but the customer can immediately withdraw it provided that the customer will not get the deposit interest.
- Cash
Cash is current assets in the form of money deposited in bank accounts or other places. Certainly, cash assets are easy to find because cash is in the form of cash itself.
- Invest in bonds
Bonds are debt statements. Even the state itself issues bonds intended for investment . Just like deposits, to get the maximum profit needed a certain period of time to sell bonds. But that does not mean bonds cannot be immediately cashed.
- Notes Receivable
Receivable notes or also known as notes receivable is proof of debt from one company to another company. Companies that have accounts receivable (which provide debt) make receivables from notes on assets. And these assets can be billed (disbursed) according to the time the agreement of the two companies. However, to immediately disburse these assets without waiting for the time the agreement can be transferred to another party or discounted to the bank.
- Account receivable
Trade receivables are a form of invoice for a company to its customers to be sold on the company’s products on credit without a formal agreement. These accounts can be transferred to financial institutions for faster disbursement.
- Inventory
Inventory in the form of raw materials or means of production also includes monetary assets. This is because the inventory can be sold at any time in order to get cash immediately.
