Nonmonetary Transaction


DEFINITION of 'Nonmonetary Transaction'

Transactions that do not result in a transfer of funds between accounts. Nonmonetary transactions can be something as simple as a change of address or can refer to more complex transactions in the financial sector. For example, a $0 deposit to initiate an automated clearing house transaction (e.g., direct deposit or auto-withdrawal) would be considered a nonmonetary transaction.

The even exchange of assets (e.g., transferring property or inventory) is a nonmonetary transaction. In cases of property exchange, the fair values of the underlying assets need to be determined, if possible.

BREAKING DOWN 'Nonmonetary Transaction'

Nonmonetary transactions can be either reciprocal or nonreciprocal. Reciprocal (two-way) nonmonetary transactions involve two or more parties exchanging nonmonetary goods, services or assets. Nonreciprocal (one-way) nonmonetary transactions involve the transfer of goods, services or assets from one party to another, such as a business making an in-kind donation of employee volunteer time or physical items to another organization.

  1. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses ...
  2. Automated Clearing House - ACH

    An electronic funds-transfer system run by the National Automated ...
  3. Inventory

    The raw materials, work-in-process goods and completely finished ...
  4. Nonfinancial Asset

    An asset with a physical value such as real estate, equipment, ...
  5. Liquid Asset

    An asset that can be converted into cash quickly and with minimal ...
  6. Asset

    1. A resource with economic value that an individual, corporation ...
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