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What is a financial asset?

A financial asset is a liquid asset that represents—and derives value from—a claim of ownership of an entity or contractual rights to future payments from an entity. A financial asset's worth may be based on an underlying tangible or real asset, but market supply and demand influence its value as well.

What is an asset in business?

An asset is a resource owned by an individual or organization which provides economic value. This includes cash, equipment, property, rights, or anything that helps a company generate revenue or reduce expenses.

What are assets based on?

Assets refer to anything that has economic value and can be converted into cash. They can be classified based on their convertibility, physical existence, or usage. Assets also have three properties: ownership, economic value, and resource.

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