Q: definition and recognition criteria of liabilities
A: Liability is the obligation to be repaid or loss to be met in future.
Q: 20. Which of the following types of financial assets represents a creditor relationship with an…
A: Any liquid asset which acquires its value from a contractual right or ownership claim is known as a…
Q: What type of financial institutions may offer the services for reception and transmission of orders…
A: Order receipt and transmission refer to receiving a purchase or sale order from a customer and…
Q: Equity shareholders are creditors of the organization”. Do you agree with the statement? State…
A: Characteristics of Equity shareholders are as follows: Equity shareholders are permanent in nature…
Q: All institutions and procedures for bringing buyers and sellers of shares, debentures, bonds,…
A: Financial market means the market where buyer and seller of securities meet.
Q: Write a persuasive statement either supporting or opposing a bank's right to assign a mortgage to a…
A: A mortgage payment usually consists of four main components: principle, interest, taxes, and…
Q: Which of the following forms of business organization can finance its operation through acquiring…
A: The corporations are considered as separate legal entity. They have different types of methods for…
Q: When borrowers borrow funds from the financial market through a financial intermediary, it is known…
A: Since there are multiple questions, we will answer only first question. If you want remaining…
Q: Match the following words with the six C's of credit: character, collateral, capacity, capital,…
A: Credit is an important term for the business, mostly funds of the firms are on credit means are…
Q: at is the relationship of Debt (Loans) to Borrowers to Financial Intermediaries?
A: The financial intermediaries are very important in the financial world and transactions and there…
Q: Which of the following entity is involved in regulating the financial sector Ⓒa PFRDA Ob. SEBI OC…
A: The financial sector is a sector that is responsible for providing financial services to the…
Q: Which of the following can be described as involving direct finance? O A. People buy shares in a…
A: Borrowers borrow funds directly from the financial market without the need of a third-party service…
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: Which of the following forms of business organization can finance its operation through acquiring…
A: There are various forms of business organizations like, General Professional Partnership Single…
Q: Why is it necessary for the bank to have the right to assign a mortgage to a third party (for…
A: Assignment of mortgage to a third party : It is referred to as an agreement in loan obligations are…
Q: With reference to a lender will loan a certain amount of funds to an entity in need of funds using…
A: Collateral is defined as the pledge of the borrowers in a lending agreement of the particular…
Q: Describe the three classic conflicts of interest
A: Conflict of interest means the conflict arising among two parties due to the incompatibilities.…
Q: Limited liability refers to an owner's liability for which of the following? I. The amount invested…
A: Under limited liability company the shareholders liability is limited only to the extent of nominal…
Q: Explain Issuance of loans to unworthy entities with examples
A: Issuance of loan to unworthy entities means granting of loans to the entities having a poor…
Q: nvestments in equity instruments are financial assets because they are Group of answer choices…
A: Financial instrument: International financial reporting standard- 9 (IFRS-9) states the rules and…
Q: How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the…
A: Introduction: This question stated that the company made the provision or provided for allowance for…
Q: According to PFRS9 Financial Instruments, a financial instrument is recognized when the entity…
A: As per PFRS 9 Financial Instruments, a financial instrument is recognized when the entity becomes a…
Q: What are financial statements and explain different types of users of finanacial statement including…
A: Financial statements are statements that are prepared at the end of the period in order to analyse…
Q: Which of the following statements about the characteristics of debt and equity is true? a. All of…
A: Introduction:- Equity:- Equity means company collection of funds in the form of shares. equity…
Q: Which of the following will constitute a line item in a close corporation’s statement of members’…
A: Members contribution,Reserves ,loan to member,loans from members, Retained earnings are the line…
Q: Which of the following is a long term financial instrument? a. Certificate of deposit. O b.…
A: Funds based on period are: Short term funds Long term funds.
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: Which of the following is not considered a stakeholder of an organization?A. creditorsB. lendersC.…
A: Accounting is the process of recording, summarising and analysing accounting information for the…
Q: Which of the following is a financial liability? a. Deferred revenue b. A warranty obligation c. A…
A: Solution Concept As per the relevant accounting standard Financial liability is…
Q: Which of the following is correct regarding the classification of investment in debt instruments as…
A: A debt instrument invests in fixed-interest generating securities such as corporate bonds,…
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: True (t) or False (f) _____ Debt investments are investments in government and corporation bonds
A: Debt investments are investments in a company or firm by borrowing amount through the way of…
Q: Under the conceptual framework for international financial reporting a non-controlling interest fits…
A: When ever a company acquires another company's share of more than 50%, it obtaines control over it…
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: of the follwoing are financial claims
A: Pension obligation These entitle the employee to make a financial claim against the employer. Bonds…
Q: Organized securities markets a. are examples of financial intermediaries. b. are secondary…
A: Secondary market transfers liquidity to the primary market.
Q: A formal obligation that entitles one party to receive payments and/or a share of assets from…
A: Sometimes at the time of purchase or sale of asset, one party exchanges something with another…
Q: uestion, the unilateral transfer is stated as a debit, but in the calculation for the answer, it is…
A: Balance of Payments is nothing but the record of the economic transactions of the residents of a…
Q: Question A _______________is a separate entity and in that capacity can borrow from banks,…
A: Public Company:- It is a separate entity and in that capacity can borrow from banks, bondholders,…
Step by step
Solved in 2 steps
- 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 Markets7) In ____________, funds are transferred when one party purchases financial assets previously held by another party. a. Medium of exchange b. Financial instruments c. Financial markets d. Financial institutionsWhich of the following transactions qualify as like-kind exchanges? You must support your answer for each item below. a) Bonds exchanged for an office building b) A factory for an office building c) Undeveloped land for an office building
- Which of the following acts as an intermediary between the savers and investors by mobilising funds between them? a.Financial Markets b.Households c.Financial Instruments d.GovernmentHow 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?Which of the following accounts is reciprocal account to the Investment inBranch account? A. Equity in Home OfficeB. None of the aboveC. Home Office capitalD. Branch Income
- Describe the nature of the basic services of financial institutions. What are the channels through which the financial system matches savers and borrowers.? What is a financial intermediary?The ANZ Bank is an example of a: Select one: a. an Authorised Depository Institution. b. a Unit Trust c. a Finance Company d. a Contractual Savings Institution.Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment
- Is insurance company a financial institution? Why?When an entity prepares separate financial statements, it shall account for investments in associates A. At cost. B. Any of the choices. C. In accordance with PFRS 9. D. Using the equity method as described in PAS 28.Discuss with examples why the money markets could be considered arguable as playing complementary roles with the banking and insurance institutions.
