Blogger: Lyn Robison Some assets are fungible, and some are not.
Fungible means that the asset can be freely exchanged or
replaced with another of like nature or kind. Oil is fungible.
One barrel of oil is considered identical to, and can therefore
be replaced by, another. Other assets, such as grain, lumber,
and ¼” sheet metal screws are fungible assets. There is no need
to keep track of instances of these assets, just their quantity.
American dollar bills are fungible. One paper dollar is just as
good as another. Dollar bills do have serial numbers, so you can
go to Where’s George and see where a particular dollar bill has
been. And the Treasury Department probably uses the serial
numbers somehow. But in the business world (even though it seems
like a dollar isn’t worth a half-a-buck) one dollar bill is just
as good as another. Used cars, OTOH, are not fungible. One 1987
Ford Taurus is not just as good as another. Automobiles have
vehicle identification numbers, because it is important to
identify each indi