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LSDefine
Simple English definitions for legal terms
nominal asset
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A quick definition of nominal asset:
A nominal asset is something that someone owns and has value. It can be things like cash, inventory, equipment, real estate, accounts receivable, and goodwill. It's important to know what assets someone has when they owe money or when they pass away. Some assets can be easily turned into cash, while others are harder to sell or take longer to turn into cash.
A more thorough explanation:
A nominal asset is an item that has value and is owned by an individual or organization. It can include cash, inventory, equipment, real estate, accounts receivable, and goodwill. Nominal assets are listed on a balance sheet and can be used to pay debts or distributed in the case of bankruptcy or death.
- Current assets: Assets that can be easily converted into cash, such as marketable securities, notes, or accounts receivable.
- Fixed assets: Long-term assets used in the operation of a business, such as equipment, land, or an industrial plant.
- Intangible assets: Nonphysical assets that can be converted to cash, such as patents, trademarks, or copyrights.
These examples illustrate how different types of assets can be classified as nominal assets and included on a balance sheet. They can be used to evaluate the financial condition of an individual or organization and can be important in determining the ability to pay debts or distribute assets in the case of bankruptcy or death.