financial-current asset
real asset real asset
Ive had a similar question like this in a finance exam. Apparently its wrong to say that all financial assets are intangible (i.e. yes, a financial asset can be a tangible asset). Example: Cash
Land is considered a real asset because it represents a physical, tangible resource that has intrinsic value. Unlike financial assets, which are claims on future cash flows or ownership stakes in companies, real assets like land can provide utility, generate income through leasing, and appreciate in value over time. This distinction highlights the fundamental differences between physical assets and financial instruments in investment portfolios.
Yes, cash on hand is considered an asset because it is a valuable resource that a company or individual owns and can use to meet financial obligations or make purchases.
How is the value of any asset whose value is based on expected future cash flows determined?
real asset real asset
Cash is considered a real asset because it holds tangible value and can be readily used for transactions.
Financial
Inventory is a real asset for business for which company use in earning revenue for business.
Ive had a similar question like this in a finance exam. Apparently its wrong to say that all financial assets are intangible (i.e. yes, a financial asset can be a tangible asset). Example: Cash
no
Yes, the market value of any real or financial asset can be estimated by projecting its future cash flows and discounting them to their present value. This method, known as discounted cash flow (DCF) analysis, accounts for the time value of money, reflecting how future cash flows are worth less today. By applying an appropriate discount rate, investors can assess the intrinsic value of an asset and make informed decisions based on this valuation.
Land is considered a real asset because it represents a physical, tangible resource that has intrinsic value. Unlike financial assets, which are claims on future cash flows or ownership stakes in companies, real assets like land can provide utility, generate income through leasing, and appreciate in value over time. This distinction highlights the fundamental differences between physical assets and financial instruments in investment portfolios.
The cash derived from the sales would be the asset. While the term "cash sales" (as opposed to credit sales) may appear on an income statement or a cash flow statement in the plus column, the cash received would appear as an asset on the balance sheet or financial statement.
Yes, cash on hand is considered an asset because it is a valuable resource that a company or individual owns and can use to meet financial obligations or make purchases.
www.investopedia.com Real assets: Physical or identifiable assets such as gold, land, equipment, patents, etc. They are the opposite of a financial asset. Real assets tend to be most desirable during periods of high inflation. Financial assets: An asset that derives value because of a contractual claim. Stocks, bonds, bank deposits, and the like are all examples of financial assets. Unlike land and property--which are tangible, physical assets--financial assets do not necessarily have physical worth.
How is the value of any asset whose value is based on expected future cash flows determined?