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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A: Financial market means the market where buyer and seller of securities meet.
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Q: 7) In ____________, funds are transferred when one party purchases financial assets previously held…
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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…
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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…
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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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Q: 1. Which of the following statements on principles and measurements of accounting in Islamic finance…
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Q: Question 1 True or False: Monetary Assets and liabilities constitute assets and liabilities…
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Q: investments in equity instruments are financial assets because they are a) cash equivalents b)…
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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?
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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…
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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.