Which of the following is an example of a financial asset?

A financial asset is typically defined as an asset that derives its value from a contractual claim, rather than being a physical object or tangible asset. In this context, the correct answer encompasses a broader view of what can be classified as a financial asset.

Cash in hand represents the most straightforward financial asset. It is a liquid form of currency that can be used immediately for transactions, making it a key financial resource.

A cash-equivalent investment like stocks is also a financial asset, as it represents ownership in a company and gives the holder a claim on a portion of that company's profits and assets. Stocks fluctuate in value based on market conditions, and they can be converted into cash, which further highlights their nature as a financial asset.

While a company’s building is a valuable asset, it is considered a tangible asset rather than a financial one. It does not derive its value from a contractual claim like stocks or cash does.

The inclusion of all these examples in the correct answer indicates an understanding that financial assets can take different forms, but only those that represent rights to cash flow or claim to assets fall squarely under the definition of financial assets. Thus, the answer captures the concept that cash in hand and cash-equivalent investments like stocks are indeed financial assets,