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Thursday, 29 March 2012

What are Physical and Financial assets

Assets are used for generation of income.

Example of physical assets are land,house. These physical assets are used for generation of income. Like a farmer uses a physical asset(land) to generate income for himself and his family.


Examples of Financial assets are shares,debentures,bonds. These financial assets are used for generation of income like you trade shares in share market to generate income for yourself.

Assets are used for generation of income. That is why we use the term NPA( Non Performing assets).
You might want to read a story here on SBI declaring Kingfisher as NPA in Post.jagran.com



                                                                                          
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