Which of the following best describes financial assets?

Financial assets are best described as items owned by an individual that have value. This includes various forms of wealth, such as cash, stocks, bonds, real estate, and other investments, which can be converted into cash or have potential for future income or appreciation. They are considered assets because they represent a claim to future financial benefits.

The other options do not accurately define financial assets. Obligations owed to others refer to liabilities, which represent debts or commitments that an individual must fulfill, rather than assets. Pending debts to be paid also pertain to liabilities, again indicating obligations rather than ownership. Tax liabilities represent potential financial obligations to the government and do not embody assets that an individual owns or has a claim to. Thus, the definition of financial assets aligns with owning valuable items that can contribute to a person's net worth.