Concept explainers
To determine:
The reason why financial assets show up as a component of household wealth but not of national wealth
Introduction:
The assets are important part of the balance sheet because it helps in understanding the net profit of business. There are two types of assets: Real assets and financial assets. Real assets the type of assets which are commonly present as physical assets like any type of infrastructures, precious metals, machineries, or agricultural lands etc. Financial assets are the type of assets that contains cash or any transactional instrument from which cash can be easily collected.
National wealth is described as the total sum of nation's assets including real and financial assets from which liabilities of nation should be deducted.
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