Consider a hypothetical commercial real estate property.
The land, building, improvements, and rights to use them represent
The inventory, desks, chairs, and other assets on the property not
permanently attached are 'personal property' (of either the landlord
or the tenant).
So far so good.
Now let's consider a hypothetical 'Assets' accounting ledger.
Working up from the longer term assets to the shorter term assets...
various rights, intangibles, and intellectual property assets I think
can be considered 'real property'... land and buidlings in the asset
ledger are considered 'real property'... equipment, office supplies,
and other such assets can be considered 'personal property'... but
what of cash and cash-like equivs? Is cash 'real property' or
'personal property'? Seems odd to call cash 'real property', but if
you think about it, that cash received from rents is a tangible
liquification of the intangible rights to use that 'real property'
space for that month. On the other hand, my cash account may contain
cash from the sale of 'personal property' assets such as inventory for
a retailer or 'personal property' equip from a service business or
landlord. When a lawyer deposits a check in payment for professional
services, did he get paid for real or personal property?
And so is cash 'real' or 'personal' property? Neither? Both? Some
third category? Does it depend on the source?
Cash (such as your checking account or T-bills) is certainly part of
the overall value of a commercial entity/operation.... but if we start
with the assumption that a commercial asset's total value is the sum
of its 'real property' value and its 'personal property' value, what
category is the cash a part of?