Financial Assets are resources to generate monetary benefits in the form of income. 

Imagine the House you own, or your parents own which will pass on to you in the future. If you decide to sell it today, it will fetch you money in return. Therefore that house becomes your Financial asset. The asset is something valuable that can fetch you money in return or gives you benefits. In other words “Financial Assets are resources with monetary value capable of generating benefit be it in cash or kind in future.” Let us discuss this more with examples below.

Assets like your House, Car, & your precious Diamond ring can be touched and felt. Another category of assets are those which you can only feel, but cannot touch or see like fragrance, music & love.

In the same way all the assets fall under 2 categories: –

• Tangible Assets- Assets that can be seen, touched, and felt.

Example- Fixed assets like plant, machinery, vehicles, etc.

• Intangible Assets– Assets that cannot be seen, felt, or touched physically.

Example- Goodwill, patents, brands, trademarks, etc.

To understand more about the assets and how assets alone can reveal a lot about the company click below:

https://www.finmargin.com/examples-of-financial-assets/

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