a.
To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.
b.
To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.
c.
To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.
d.
To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.
Introduction:
Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.