List the Criteria Determining Whether an Asset Is a Financial

question 38

Essay

List the criteria determining whether an asset is a financial asset.Give an example of a financial asset and a non-financial asset.

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Definitions:

Note Receivable

A written promise for amounts to be received by one party from another, typically including the terms for repayment.

Maturity Date

The specified date on a financial instrument when the principal is due to be paid back in full to the lender.

Cash Received

Funds that are taken in by a business, representing inflow from sales, investments, financing, and other sources.

Notes Receivable

Written promises for amounts to be received, typically noting interest, by a debtor in favor of the creditor.