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Financial Assets are those things that a business owns.
In a Balance Sheet Report, Financial Assets are listed in order of their Liquidity, with those most easily converted to cash at the top through to long term assets at the bottom. Generally Financial Assets are listed as:
- Cash and cash equivalents: the most liquid assets.
- Accounts receivable: money which customers owe the company.
- Inventory: goods available for sale, valued at the lower of the cost or market price
- Prepaid expenses: representing value that has already been paid for, such as insurance, advertising contracts or rent
- Long-term assets including investments, fixed assets (land, buildings, machinery)
- Intangible assets (intellectual property, goodwill)