Nonmonetary Assets


DEFINITION of 'Nonmonetary Assets'

Assets in which the right to receive a fixed or determinable amount of currency is absent. This feature distinguishes nonmonetary assets from monetary assets such as cash, bank deposits, and accounts and notes receivable, which can be converted into a fixed or determinable amount of currency. Nonmonetary assets include intangible assets such as copyrights and patents, goodwill, inventories, property, plant and equipment.

BREAKING DOWN 'Nonmonetary Assets'

In some cases, it may not be readily apparent whether an asset is a monetary or nonmonetary one. In such cases, the determining factor is whether it represents an amount that can be settled in or converted into monetary terms in a very short time frame, in which case it is a monetary asset; if it cannot be settled in monetary terms, it is a nonmonetary asset.

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  1. Should computer software be classified as an intangible asset or part of property, ...

    In accounting terms, an intangible asset is something of value that is not of physical nature. On the other hand, property, ... Read Full Answer >>
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    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  3. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. Are dividends considered an asset?

    Whether dividends paid on stock are considered an asset depends on which role you play in the investment: the issuing company ... Read Full Answer >>
  6. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>

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