Why do we segregate assets into financial and non-financial assets?
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Assets can be classified as Financial or Non-financial assets. One might wonder why this is necessary. Let us dive into this concept, beginning with understanding what are financial and non-financial assets and why are they classified as such.
What are Assets?
Assets are things that have a monetary value and are beneficial for a business. Assets are commonly classified as tangible, intangible, current, fixed, financial, non-financial, etc.
Plant and machinery, land, buildings, cash, bank balance, patents, etc are some of the examples of assets that a business has.
What are Financial Assets?