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Real assets are physical assets such as plant, machinary, vehicles, stock/ inventory.

Financial assets, are cash, bonds, shares etc., etc.

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Distinguish between real asset and financial asset?

Real assets are tangible or physical assets that have intrinsic value due to their substance and properties, such as real estate, commodities, and machinery. In contrast, financial assets are intangible assets that derive value from contractual claims, such as stocks, bonds, and bank deposits. While real assets can provide utility and can appreciate in value over time, financial assets primarily generate returns through interest, dividends, or capital gains. Essentially, real assets represent physical ownership, whereas financial assets represent ownership of a claim on future cash flows.


With examples explain the difference between real assets and financial assets?

Real asset: These are used to produce the Firm's product and services. They include Tangible assets such as;MachineryFactoriesVehiclesOffices.Furthermore, real asset includes intangible assets such as;Technical knowledge (intellectual property IP)TrademarksPatents.Financial asset: The firm finances it's investments in real asset by issuing financial assets in the debt market for investors. A share of stock is financial asset which has a value as a claim on the firm's real asset and the income those assets will produce. A bank loan is a financial assetFinancial market: Where stocks, bonds security's are traded or change hands. Investor (shareholder): Who lend the money to the issuer in expectation of profit on investment).Edited by Naren


What is the difference between real asset and financial aseet?

fair and ethics


What are traded in financial markets?

a. Security b. Assets used to produce goods and services c. The goods and assets produced by the firm d. both real assets and financial assets


Distinguish between financial investment and real investment?

Financial investment involves allocating capital to financial assets such as stocks, bonds, or mutual funds with the expectation of generating returns through appreciation or income. In contrast, real investment refers to the acquisition of tangible assets like real estate, machinery, or infrastructure that enhance productive capacity and generate goods or services. While financial investments focus on market performance and monetary returns, real investments emphasize physical assets and their utility in the economy. Both types of investments play crucial roles in economic growth but operate in different domains.

Related Questions

Lease obligations real or financial assets?

They are financial assets because they are non-physical assets


What is the difference between real property assets and personal property assets in cost segregation?

Property is that which an individual owns. Real property is real estate, land, investment/rental properties, homes, etc. Personal property is jewelry, art, automobiles, valuable collections, cash and financial assets other than real property.


Is college education a real or financial asset?

Financial


Distinguish between real asset and financial asset?

Real assets are tangible or physical assets that have intrinsic value due to their substance and properties, such as real estate, commodities, and machinery. In contrast, financial assets are intangible assets that derive value from contractual claims, such as stocks, bonds, and bank deposits. While real assets can provide utility and can appreciate in value over time, financial assets primarily generate returns through interest, dividends, or capital gains. Essentially, real assets represent physical ownership, whereas financial assets represent ownership of a claim on future cash flows.


With examples explain the difference between real assets and financial assets?

Real asset: These are used to produce the Firm's product and services. They include Tangible assets such as;MachineryFactoriesVehiclesOffices.Furthermore, real asset includes intangible assets such as;Technical knowledge (intellectual property IP)TrademarksPatents.Financial asset: The firm finances it's investments in real asset by issuing financial assets in the debt market for investors. A share of stock is financial asset which has a value as a claim on the firm's real asset and the income those assets will produce. A bank loan is a financial assetFinancial market: Where stocks, bonds security's are traded or change hands. Investor (shareholder): Who lend the money to the issuer in expectation of profit on investment).Edited by Naren


What is the difference between real asset and financial aseet?

fair and ethics


What are traded in financial markets?

a. Security b. Assets used to produce goods and services c. The goods and assets produced by the firm d. both real assets and financial assets


Types of real assets?

In accounting, real assets are defined as things that are tangible and have real value. These can include properties, precious metals, financial assets, stocks, bonds, and other real property.


What is the difference between investing in shares and investing in real assets?

Investing in shares is where you purchase a certain share of a company. Investing in real assets mean when you actually purchase a house, or gold or silver.


Differentiate Real and financial assets?

Real assets are physical or tangible items that have intrinsic value, such as real estate, commodities, and machinery. They typically provide utility or can generate income directly through their use. In contrast, financial assets represent claims on real assets or future cash flows, such as stocks, bonds, and bank deposits. Financial assets derive their value from the contractual rights they confer rather than any physical substance.


What is the difference between your net worth and and assets?

Net worth is the total value of an individual's assets minus their liabilities, providing a snapshot of overall financial health. Assets are anything of value owned, such as cash, real estate, and investments, while liabilities are debts or obligations owed to others. Thus, net worth gives a clearer picture of financial standing by accounting for both what is owned and what is owed.


What is difference between real assts and financial assts?

hi this is ashvini from delhi doin financial palanning from i.c.f.p. thanks for replied