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Real assets are physical assets such as plant, machinary, vehicles, stock/ inventory. Financial assets, are cash, bonds, shares etc., etc.
Physical assets are plant, machinery, tools, land, building e.t.c where as financial assets include cash, shares, bonds, marketable securites, financial assets are used to purchase Physical asstes.
A physical asset is something tangible that is owned such as equipment, cash, and inventory. Financial assets refer to things such as stocks and bonds, which have value but are not tangible.
A company should implement strict internal controls related to the management of its cash assets. This includes who is permitted to access cash assets, how cash can be spent, and how much cash should remain in accounts.
Current Assets refers to Assets which are immediately convertable to cash (liquidated). This includes Cash, Supplies, and anything else that may be easy to sell. Non-current Assets refers to assets which are more difficult to liquidate, like Land.
It depends upon how you keep the money or cash, easy liquidity is a factor determining money as a financial asset.Financial assets are non-physical assets those can be readily converted into cash like Bank balance, Shares, short-term investments, Treasury bills, commercial papers, bill receivables etc. So, if you are keeping money as bank deposit this falls under the financial asset and so on.Typically, The answer is: "YES" financial assets include money.
By, Mohammad Shiran Khan. Physical assets are more stable in nature like plant, machinery, tools, land, building e.t.c where as financial assets are paper or electronic claims include shares, bonds, marketable securities some issuers are govt or corporate body. financial assets are used to purchase Physical asset. and financial assets get more returns when compared with physical assets financial assets liquid in nature.
They should determine how much the firm should invest in assets and how much cash should be raised.
To liquidate is to turn something into cash or money. In financial terms liquidating assets refers to the sale of stocks or shares for cash. Many companies have liquidation sales, where the company wishes to turn all their stock at hand and tangible assets into cash.
Par value is the standard price of securities such as Stock and Bonds; it has nothing to do with cash valuation. Cash is stated on the financial statements at Nominal Value (i.e., current dollars unadjusted for inflation).
cash flow from financing means all those transactions related to cash inflow or out flow of share capital in business or purchase of assets.
How is the value of any asset whose value is based on expected future cash flows determined?