Available asset – What it is, definition and concept

The available asset is the one that an organization has to immediately satisfy commitments or payment obligations of all kinds.

In the day-to-day accounting of a commercial company, the available asset is identified with the amount of money that it can have immediately.

This amount is usually deposited in bank accounts or in the company’s own box. In situations of imminent payment or commitments to be satisfied without delay, these are the resources that are used.

In accounting terms, the available assets make up, together with the realizable assets, the so-called current assets on the balance sheet.

Available assets and liquidity

On a daily basis, the available asset is usually identified with the liquidity elements that a company has. That is, ease of converting it into cash.

In this sense, both the money deposited at the cash register in the form of cash (both money and paper), as well as that belonging to bank accounts and recoverable accounts make up the bulk of this accounting group and have this character of liquidity.

Composition of available assets

Taking into account the definition given, this type of accounting asset is structured according to the following components:

  • Cash, deposited in the box in the form of bills and coins.
  • Other payment documents that the company has, such as bearer checks or promissory notes received from debtors, are also taken into account.
  • The action of bank debit cards within this modality is also usually taken into account. This is not the case with credit loans, as they involve payment commitments in a future period.
  • Those bank deposits whose negotiation conditions with the entity allow immediate cash withdrawals.
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Relevance of the available asset

In this way, companies with constant disbursements within their economic activity require this type of assets at all times.

This is the case, for example, with small businesses in which there is constant movement of cash, as well as in supermarkets.

In large companies, with payment obligations of greater magnitude, this concept is not so relevant, since they usually resort to payments deferred in time and of less immediacy.

In other words, credit payment instruments are frequently used and associated with the influence of interest rates.

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