Definition

Operating asset VS Financial asset

An operating asset is used to produce goods or services to sell to customers in operations.

A financing asset is used for storing excess cash to be reinvested in operations, pay off debt, or pay dividends.

Share it:  Cite

More from this Section

  • Hyperinflation
    Hyperinflation is the economic situation characterized by soaring prices. ...
  • Partnership
    Partnership is an association of two or more persons to carry on as co-owners of a business ...
  • Owners’ equity
    Owners’ equity is the funds contributed by owners plus profits not distributed to owners ...
  • Planned economy
    An economic system in which all economic decisions are planned by a central government ...
  • Statutory law
    Statutory law is the written law, including state and federal constitutions, legislative ...