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:

Outstanding Balance

The amount of money owed that has not yet been repaid.

Invoice

A document detailing a transaction between a buyer and seller, including the quantity, price, and terms of sale.

Cash Discount

A deduction from the invoice price offered by a seller to encourage prompt payment by the buyer.

Payment Terms

The conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay off the amount due.