a)What is the basic principle in determining the price of a financial asset? b)Why is it difficult to determine the cash flow of a financial asset? c)Why are the characteristics of an issuer important in determining the price of a financial asset?  d)What are the two principal roles of financial assets?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 12Q: Is there any significance that can be attributed to whether net cash flows are generated from...
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a)What is the basic principle in determining the price of a financial asset?

b)Why is it difficult to determine the cash flow of a financial asset?

c)Why are the characteristics of an issuer important in determining the price of a financial asset? 

d)What are the two principal roles of financial assets?

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