2007-07-04 05:27:43 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
On its face, the assertion is false. A house has value, as does a car (although it depreciates), and any number of other assets. Now, an asset has *monetary* value if and only upon its sale. It is an asset that cannot be sold for consideration that has no monetary value.
2007-07-04 05:39:34 · answer #1 · answered by Sgt Pepper 5 · 0⤊ 0⤋
False.
Although some assets might generate cash flow, annually or otherwise, many are held for the appreciation in value and may not generate any cash flow until sold.
A stock that doesn't pay any dividends would be an excellent example of an asset that doesn't generate any cash flow but still has value.
2007-07-04 12:31:07 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
False.
You don't need cash FLOW for an asset to be valuable. You simply have to have the ability to convert it to a valuable commodity, such as cash.
Gold coins are a valuable asset. They produce no annual cash flow. BUT, you can trade them for cash if you want to.
2007-07-04 12:31:12 · answer #3 · answered by Stuart 7 · 2⤊ 0⤋