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The nature of the assets determines which accounting standards will apply for their accounting
treatment. Classify the following accounts found in the ledger of Glory Corporation as (A) Financial
assets or (B) Non- nancial assets. 
1. Cash 

2. Cash equivalents 

3. Accounts Receivable 

4. Inventories  

5. Debt Investments at Fair Value 

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7. Unused Supplies 

8. Property, Plant, and Equipment  Ask Expert Tutors

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9. Franchise 

10. Equity Investments at Fair Value 

11. Investment in Associate  

12. Investment property 

13. Investment in Subsidiary Company 

14. Advances to O cers and Employees 

15. Deposits on Utility Contracts  

16. Cash Surrender Value of Life Insurance Policy 

17. Patents 

18. Goodwill 

19. Claims for Income tax Refund 

20. Deferred tax asset 

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Financial assets are those that are tangible and which has a value determined due to some contractual
claim. Common examples could include: Stocks, Bonds, Bank Deposits, Cash. Unlike is the case of
property, bank deposits or other forms of tangible physical assets, nancial assets do not necessarily
need to have some inherent physical worth.
As per IFRS, commonly spelt nancial assets are equity, cash, share certi cates, an accrual to receive
some nancial asset from another entity.

Non- nancial assets are those that necessarily need to have a physical value. Example, machinery, real
estate, motor vehicles etc. many of the nancial assets can be di cult to sell since there might not be a
ready market of sellers and purchasers, who have the want to purchase the asset.

Source: https://www.investopedia.com/terms/n/non nancialasset.asp

https://www.investopedia.com/terms/f/ nancialasset.asp

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Subject: Accounting, Business, Financial Accounting

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December 31, 2017 statement of nancial…

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