Financial Resources Examples

  • Cash: money or its equivalent.
  • Bank Deposits: money placed into banks, including checking accounts and money market accounts.
  • Holdings of Stocks: publicly traded stocks can be easily converted to cash, and are considerer financial resources of an organization. This stocks are traded on stocks exchanges, like the NASDAQ or the NYSE. It takes only a few minutes to sell stocks on the market.
  • Holdings of Publicly Traded Bonds: There are various types of bonds that can be included in the financial resources of an organization: U.S. government securities, mortgage bonds, foreign bonds, corporate bonds, etc.
  • Foreign Currency Holdings: These are currencies issued in another country. Foreign currencies can be held in a local or in a foreign bank. Foreign currency can be quicly converted to local currency, thus they are considered part of the financial resources of an organization. Also, many international companies need to hold amounts of foreign currency to carry out its operations, like selling abroad or paying foreign suppliers.
  • Checks: checks are instruments that contain an order that directs a bank to pay an amount of money to the check holder. Check can be easily converted to money, and sometimes, checks can be used to pay to suppliers: checks are financial assets.

Financial Resources are assets of the organization, and are used to carry out the business activities, like paying salaries and buying supplies.

Sources of financial resources:
- The main activities of the business, like the sale of goods and services.
- Capital funding: issues of shares and capital contributions
- External sources: bank loans and issues of corporate bonds


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