Asked by Kayla Ellison on Jul 27, 2024
Verified
Financial assets:
A) include cars, houses, and factory equipment.
B) provide some kind of service.
C) have value because of claims to future cash flows.
D) are not legal documents.
Financial Assets
Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and other investments.
Future Cash Flows
The projected income and expenditures that a company expects to generate over a forthcoming period.
Legal Documents
Official papers that indicate agreement to terms, rights, and responsibilities, enforceable by law.
- Differentiate between real assets and financial assets.
Verified Answer
BP
Benjamin PullenJul 30, 2024
Final Answer :
C
Explanation :
Financial assets have value because of claims to future cash flows, such as stocks, bonds, and derivatives. Cars, houses, and factory equipment are physical assets, and providing services is the function of a service industry. Legal documents may be related to financial assets, but they are not financial assets themselves.
Learning Objectives
- Differentiate between real assets and financial assets.