A formal obligation that entitles one party to receive payments and/or a share of assets from another party is called as a. Financial Institutions b. Medium of exchange c. Financial Instruments d. Financial Markets
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Q: Explain how assets acquired in exchange for equity securities are valued.
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Q: Which of the following should be classified as financial instrument? Inventories C. Patents B.…
A: IAS 32 defines financial instrument as a " contract that gives rise to a financial asset of one…
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A: Financial market means the market where buyer and seller of securities meet.
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A: Financial institutions are organizations which are engaged in creating loans, accepting deposits.…
Q: financial institution is a mutual association, it means that it is owended by the
A: Introduction: Financial institutions can also be known as a institution or a corporation which deals…
Q: 7) In ____________, funds are transferred when one party purchases financial assets previously held…
A: Financial institutions are those institutions which help in the transfer of funds or assets between…
Q: With regard to the definition of revenue given by IFRS 15, which of the following statements is…
A: International Financial Reporting Standards (IFRS): IFRS are a set of international accounting…
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Q: Investments in debt instruments are financial assets because they are A. Equity instruments of…
A: Solution: Investments in debt instruments are financial assets because they are "Contractual rights…
Q: Liabilities represent amounts owed to outsiders (creditors) expected to be received from customers…
A: The balance sheet represents the financial position of the business. It records the assets and…
Q: The acquisition of assets by issuing securities would be classified as an operating activity. an…
A: Issuing securities for the acquisition of assets doesn't involve any cash flows.
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A: Non-controlling interest Non-controlling interest is also referred to as the minority interest…
Q: TRUE or FALSE The currency in which most of the inflows and outflows of the entity is…
A: a. Functional currency is currency denominated which is normally used in the transactions of an…
Q: The financial markets are composed of money markets and _____________. * a. lending institutions b.…
A: About Money Market The money market is a market which provides short-term funds. The money market…
Q: investments in debt instruments are financial asset
A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…
Q: Funds are transferred in ____________ when one party purchases financial assets previously held by…
A: A financial asset seems to be a liquid asset whose value is derived from a legal right or title…
Q: According to CF of IASB Determining how an asset or liability should be measured should ideally be…
A: IASB stands for International accounting standard board. It is a privately-owned body set up to…
Q: Explain liquid asset management as it relates to a financial institution
A: A liquid asset is an asset which can be converted into cash and marketable securities easily.…
Q: Another term used for a financial asset is ________. a. debt financing b. equity financing c.…
A: Solution: Another term used for a financial asset is "financial instrument".
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A: Advance:- Advance means, taking or paying (mostly money) for starting the work. This is mostly done…
Q: Which statement is incorrect regarding classification of financial assets? a. An entity can…
A: Financial Assets: The financial assets refers to contractual agreement between two parties for a…
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A: Balance of Payment (BOP) : The BOP is the details of all the international transaction that a county…
Q: 1. Which of the following statements on principles and measurements of accounting in Islamic finance…
A: Islamic Accounting Islamic accounting refers to the process of accounting based on Shari'ah which…
Q: An entity has financial assets held under a business model with the objective of holding financial…
A: The business model is the model in which the company aims to earn revenues for a regular period. In…
Q: Question 1 True or False: Monetary Assets and liabilities constitute assets and liabilities…
A: Assets means the resources owned by company. Liabilities means the amount owed towards the outsider…
Q: setup in the finance system that ensures clear ownership of responsibilities. A. Macroprudential…
A: Finance system is nothing but group or cluster of institutions, such as Banking Company, Investment…
Q: Which of the following statements best describes financial instruments? Answer a. All financial…
A: Option C. Financial instruments can transfer resources and risk between people Explanation…
Q: Which of the following cannot be treated as revenues for an entity? Cash sales OCredit sales…
A: Cash Sales - These are sales made against cash. Credit Sales - It refers to a sale in which the…
Q: investments in equity instruments are financial assets because they are a) cash equivalents b)…
A: Financial assets are the assets that are derived from contractual claims. It is a more liquid asset…
Q: Cash and balances with the C
A: Cashand cash due from Central Bank; cash on deposit in postal banking accounts; Due from Banks;…
Q: Define and discuss financial intermediaries?
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: the "investment in branch" is an asset account in the branch's individual financial statements a.…
A: A branch is an underlying department or division of an organization. The scattered distribution of…
Q: Which of the following transactions qualify as like-kind exchanges? You must support your answer for…
A: A like-kind exchange, also known as a like-kind exchange, seems to be a tax-favored deal that…
Q: Due to banks Deposits from customers Other liabilities Subordinated debt Taxation classify it into…
A: current liabilities - current liabilities should be repaid by the company within one year. examples…
Q: Forward contracts are: Answer a. Contracts usually involving the exchange of a commodity or…
A: A forward contract is a customized contract between two parties to buy or sell an asset at a…
Q: Under IFRS, how is presentation currency defined? The currency in which the financial statements…
A: Presentation Currency: This is the presentation currency is the term given to the monetary unit in…
Q: eposits held as compensating balances a. if legally restricted and held against long-term credit…
A: Answer: Deposits held as compensating balances are the amount that are held by lender on account for…
Q: instrument conditional on the holder (the counterparty) exercising its contractual obligation to…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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- Which of the following statements are true regarding financial instruments? (i) Financial instruments comprise of both financial assets and financial liabilities (ii) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (iii) Primary instruments are financial instruments in which an investor has made an investment in a specific instrument. (iv) A derivate instrument is normally linked to a primary instrument and transfers the financial risks inherent in the underlying primary instrument. Select one: a. (i) and (ii) b. (i) and (iii) only c. (i) only d. (i), (ii), (iii) and (iv)investments in equity instruments are financial assets because they are a) cash equivalents b) contractual rights to receive cash or another financial asset from another entity c) contractual rights to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity d) an equity instrument of another entity5.According to PFRS9 Financial Instruments, a financial instrument is recognized when the entity purchases investments in equity securities when the entity becomes a party to the contractual provisions of the instrument when the entity has a codified business model with an objective of holding assets in order to collect contractual cash flows all of these
- investments in debt instruments are financial asset because they are: -equity instruments of another entity -cash equivalent - all of these -Contractual rights to receive cash ot another financial asset from another entityInvestments in equity instruments are financial assets because they are Group of answer choices Cash equivalents. Contractual rights to receive cash or another financial asset from another entity. Equity instruments of another entity. Contractual rights to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity.These types of services may be reported as off-balance sheet items except: a. Intangible assets e.g., mortgage servicing rights. b. Standby letter of credit agreement. c. Securitization of collateral. d. Derivatives, hedge funds agreement, futures.
- How shall an entity subsequently measure financial liabilities? Is IFRS measurement of financial liabilities similar to that of U.S. GAAP? Also briefly describe the requirements regarding an option to designate a financial liability at fair value through profit and loss. Q: Does U.S. GAAP allow fair value option for financial assets and liabilities? Q; What is “own credit” issue related to financial liabilities measured at fair value through profit and loss? Q: How does IFRS 9 address this “own credit” issue?A financial instrument is any contract that gives rise to A financial asset A financial liability A financial asset of one entity and a financial liability of another entity FA © 2014 A financial asset of one entity and a financial liability or equity instrument of another entityFinancial contracts are those which give simultaneous rise to the financial assets of one entity and financial liability or equity of another equity?
- 2. Which of the following is an appropriate aggregation? A. Cash and cash equivalents (Cash in bank and sinking fund) B. Trade and other receivables (Accounts receivable and investment in bonds) C. Trade and other payables (Accounts payable and accruals) D. Provisions (Income tax payable and warranty liability)Explain why it is important for entities to understand the impact of the classification of a financial instrument as debt or equity in the financial statementsThe acquisition of assets by issuing securities would be classified as an operating activity. an investing activity. a financing activity. a noncash investing and financing activity.
