Asked by Romain Ndoutoume on Jul 30, 2024
Verified
Financial assets:
A) are legal documents.
B) give their owners claims to past cash flows.
C) include stocks and bonds.
D) Both a & c
E) All of the above
Legal Documents
Written instruments that express rights, duties, entitlements, or liabilities legally enforceable by judicial action.
Stocks And Bonds
Financial instruments that represent an ownership share in a company (stocks) and debt obligations of an entity (bonds), respectively.
- Distinguish between assorted financial holdings including shares, debentures, and unit trusts.
- Discern between concrete assets and assets of a financial nature.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
D
Explanation :
Financial assets include both legal documents and stocks and bonds, but they do not necessarily give their owners claims to past cash flows. Therefore, options A and B can be eliminated. Option E is incorrect because financial assets do not include all possible assets, such as physical assets like real estate or commodities. Choice D correctly identifies that financial assets include stocks and bonds (option C) and also acknowledges that they may take the form of legal documents (option A).
Learning Objectives
- Distinguish between assorted financial holdings including shares, debentures, and unit trusts.
- Discern between concrete assets and assets of a financial nature.