FINANCIAL

ASSETS
Definition and types of assets
Asset is a resource with economic value that an individual,
corporation, or country owns or controls with the expectation that it
will provide a future benefit. Assets are reported on a company's
balance sheet and are bought or created to increase a firm's value or
benefit the firm's operations.
 FIVE TYPES OF ASSETS
NON-
TANGIBLE CURRENT
TANGIBLE
have a physical have no physical expected to be
appearance apperance converted into cash

FINANCIA
FIXED
Long-lived assets that L
has a value that’s
can’t be easily convert
based on a contract
into cash
 FINANCIAL ASSETS

Most assets are categorized as either realm financial or intangible. A

financial asset is a cash available for use that gets its value from a
contractual right or ownership claim.

Cash, stocks, bonds, mutual funds and bank deposits are some
example of financial assets. It do not necessarily have inherent
physical worth or form. Instead, the value reflects factors of supply
and demand in the market.
 TYPES OF FINANCIAL ASSETS
CASH ACCOUNTS/
NOTES
EQUIVALENT RECEIVABLE
01 Cash or can be converted 02 Amount that is to be received
into cash from customers

EQUITY
03 SHARES
Right to receive the
dividends
 TYPES OF FINANCIAL ASSETS
BANK
BONDS
DEPOSITS
04 A amount of money that is 05 One way that companies
put into a bank account finance short-term projects

CERTIFICATE OF
STOCKS DEPOSIT
06 No set ending or expiration
date
07 Deposit money at a bank for
a specified period with
interest rate.
RECIEVABLES AS SOURCE OF FINANCING

ACCOUNT Pledging the

receivables as loan
RECEIVABLES collateral

an income asset and the

company receives interest NOTES RECEIVABLE
on the principal of the loan
 BONDS
A Bond is a fixed income instrument that represents a
loan made by an investor to a borrower.
 KEY TERMS
Money amount the FACE
bond will be worth at VALUE 1
maturity Dates on which the
COUPON bond issuer will
2 RATE make interest
Rate of interest the
bond issuer will pay COUPON payments

on the face value of DATES 3

Price at which the
the bond
ISSUE bond issuier
4 PRICE originally sells the
Date on which the MATURIT bonds
bond will mature Y DATE 4
and will be paid
 02
DEBT AND EQUITY
CLAIMS
Differentiate Debt claims and Equity claims
 DEBT
CLAIMS
It is a claim that a lender makes asserting that a
borrower in the process of brankruptcy owes its
money. The right to receive a repayment of
money from another person.
 DEBTS CLAIMS

SUBORDINATE
D DEBT
A company cannot pay back its
debt if it uses what money it
does have during liquidation
SENIOR DEBT
Debt secured by the assets or
other collateral of a company
 EQUITY
CLAIMS
It is a claim to a share of earnings after debt
obligations have been satisfied.
 EQUITY CLAIMS

COMMON PREFERRE CONVERTI

STOCK D STOCK BLE
Represents an BONDS
Holders will receive fixed Convertaible into a
ownership in a dividends before common predetermined number
corporation shareholders of common stock shares
 EQUITY CLAIMS

WARRANT DEPOSITARY
RECEIPTS
Right to purchase a company’s Negotiable certificate issued by a
stock at a specific price and at a bank represnting shares in a
specific date foreign company
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