What Are Monetary Assets

Monetary Assets are those Assets which are expressed in terms of Cash or units of Currency Such Rupees, Dollar, Pond, Euro, etc. Examples are Cash, Investments, Accounts Receivable / Debtors, etc.

The value of Monetary Assets never changes over time and keeps constant. For example, the numerical value or digits value in numbers of Cash Rs.300000 in hand or at bank remains the same over accounting cycle whether it is an inflationary period or a boom period.