Financial assets: A. Are not very productive assets and should be kept to a minimum in a well-managed company. B. Are reported at cost in the balance sheet. C. Include short-term investments in marketable securities and receivables, as well as cash. D. Only consist of cash and cash equivalents.

Question

Business

Wilkinson

27 September, 03:58

Financial assets: A. Are not very productive assets and should be kept to a minimum in a well-managed company. B. Are reported at cost in the balance sheet. C. Include short-term investments in marketable securities and receivables, as well as cash. D. Only consist of cash and cash equivalents.

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Answers (2)

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Cesar Lucero · Answer 1

C. Include short-term investments in marketable securities and receivables, as well as cash

Explanation:

Financial assets are a form of assets derived from contractual agreements on future cash flow. It is an intangible asset and may include cash, stocks, bonds and so on. They are more liquid than other tangible assets like land, tractors, building and so on. It is a form of investment asset that derives its value from contractual claim on an underlying asset. The underlying assets are real and tangible assets usually owned by an organization.

Cristofer Johns · Answer 2

Include short-term investments in marketable securities and receivables, as well as cash.

Explanation:

A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks. Financial assets are usually more liquid than other tangible assets, such as commodities or real estate, and maybe traded on financial markets.