Understanding Financial Assets Classification and Meaning
Explore the meaning and classification of financial assets based on marketability and nature. Learn about marketable and non-marketable financial assets, as well as money/cash assets, debt assets, and stock assets.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
MEANING OF FINANCIAL ASSETS Financial assets refer to the cash or cash equivalents that are used for production or consumption or for further creation of assets. Cash, Bank Deposits, Shares, Debentures, Investment in Gold, Land & Buildings, Contractual right to receive cash or another financial asset,etc.,are called as financial assets.
CLASSIFICATION OF FINANCIAL ASSETS Financial assets are classified in two ways 1. On the basis of marketability 2. On the basis of nature
CLASSIFICATION OF FINANCIAL ASSETS ON THE BASIS OF MARKETABILITY 1. Marketable The financial assets that can be bought and sold are called as marketable financial assets. They include Shares, Government Securities, Bonds, Mutual Funds, Units of UTI,Bearer Debentures. 2. Non-marketable The financial assets that cannot be bought and sold are called as non-marketable finance assets. They include Bank Deposits, Provident Funds, LIC Policies, Company Deposits,Post Office Certificates.
CLASSIFICATION OF FINANCIAL ASSETS ON THE BASIS OF NATURE 1. Money or Cash Asset Coins, Currency Notes, Bank Deposits 2. Debt Asset Debenture & Bonds 3. Stock Asset Equity Shares & Preference Shares
