I had a question- I do understand how the right to receive cash is a financial asset but I don’t understand how cash itself is a financial asset? If it is a financial asset then what liability would it have created? Because even in a loan a debtor( right to receive cash) would be created and a corresponding liability to deliver cash would be created.
If we make a loan to someone else? Is this not the cash that is being referred to – technically, the right to receive cash. In cash flow terms, a cash equivalent