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.