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Which one is not a financial asset?

A. Common share of Toyota company
B. T-bill with maturity 3 months
C. Auto plant of Toyota
D. A corporate bond of Toyota

User Aboelnour
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1 Answer

5 votes

Final answer:

An auto plant of Toyota is a physical asset and not a financial asset like the other choices listed, which include common shares, T-bills, and corporate bonds.

Step-by-step explanation:

When discussing financial assets, it is important to distinguish between financial instruments and physical assets. The choices presented are A) Common share of Toyota company, B) T-bill with maturity 3 months, C) Auto plant of Toyota, and D) A corporate bond of Toyota.

Common shares (Choice A) represent ownership in a company, making them financial assets. T-bills (Choice B) are short-term government securities that mature in less than a year. With the given example of a T-bill with a 3-month maturity, this is considered a financial asset. A corporate bond (Choice D) is a debt instrument issued by a corporation like Toyota, which is also a financial asset.

However, an auto plant (Choice C) is a physical asset. It is a tangible item used in the production of goods and not a financial instrument. Therefore, the correct answer is Choice C an auto plant of Toyota, which is not a financial asset.

User Ppi
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