Financial assets include claims in the form of obligations or liabilities issued by individuals, businesses, financial intermediaries, and governments.

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Financial assets are comprised of various types of claims, such as stocks, bonds, and bank deposits, that represent a form of ownership or entitlement to future cash flows or other economic benefits. These claims are typically issued by individuals, businesses, financial intermediaries such as banks and mutual funds, and governments. On the other hand, obligations or liabilities represent the opposite side of the balance sheet and involve a promise to repay debts or fulfill other financial obligations. Therefore, financial assets and obligations are closely related and often have offsetting positions in the balance sheet of different entities.

Financial Assets Include Claims in the Form of Obligations or Liabilities