why cash and bank is considered to be an asset?

Open in App

Solution

Hi Riya,

Assets are any tangible or intangible items that are of economic value and are owned by an individual or corporation. This includes cash and bank if we follow modern rules of classification of accounts. This is purely because, it is something that is of some value to the business. However, bank is regarded as a personal account as per traditional classification rules.

Suggest Corrections

Similar questions

All assets (except cash/bank and fictitious assets) are transferred to the ___ side of Realisation Account.

An asset is considered to be a current asset if:

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

Join BYJU'S Learning Program