Question

). “Financial assets are referring to a claim to the repayment of a certain sum of...

). “Financial assets are referring to a claim to the repayment of a certain sum of money at the end of a specified period together with dividend” Defend this statement with your own suitable examples?

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Answer #1

Financial statements are those assets which provides future benefits through a series of payment or bullet payment in the end.

Some of the asset are however perpetual on which the investor receives divided only example :equity share of the company.

So these financial assets has perpetual life and they don't have a redemption amount nor a specified period. The dividend paid on the share is a right and not a claim.

These equity financial assets gives an ownership of the company. So there is no specified period of investment.

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