Investments in debt instruments are financial assets because they are A. Equity instruments of another entity. B. All of these. C. Contractual rights to receive cash or another financial asset from another entity. D. Cash equivalents.
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Investments in debt instruments are financial assets because they are
A. Equity instruments of another entity.
B. All of these.
C. Contractual rights to receive cash or another financial asset from another entity.
D. Cash equivalents.
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Solved in 2 steps
- Which of the following assertions is relevant to whether the cash balances reflect the true underlying economic value of those assets? a. Existence/occurrence. b. Completeness. c. Rights and obligations. d. Valuation or allocation. e. All of the above.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 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 entity
- Investments 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.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)For each case of a financial asset that is not related to one another, explain (must be accompanied by an explanation) whether meeting the contractual cash flow test consists of only principal and interest: 1) Investments in debt instruments in the form of bonds with a specified maturity date. The bonds have a predetermined principal payment and interest on the principal amount payable is linked to the stock equity index on the stock exchange 2) Investments in debt instruments in the form of bonds from toll road management companies, whose contractual cash flows from these financial assets change according to the number of motorized vehicles that use certain toll roads. 3) Investments in debt instruments with a specified maturity date. A variable interest rate which gives the borrower the option of choosing a market rate of three months LIBOR for three months or one month LIBOR for one month
- Another term used for a financial asset is ________. a. debt financing b. equity financing c. financial system d. financial instrumentTransactions involving the purchase and sale of long-term assets, investing in equity securities, lending money, and collecting the principal on related loans are called a.investing activities. b.operating activities. c.buying and selling activities. d.financing activities.Payments to acquire bonds of other corporations should be classified on a statement of cash flows as: A. A lending activity. B. An operating activity. C. A financing activity. D. An investing activity.
- Funds are transferred in ____________ when one party purchases financial assets previously held by another party a. Medium of exchange b. Financial Institutions c. Financial Markets d. Financial InstrumentsOwnership of debt instruments of the government and other companies that can be readily converted to cash are best reported as: Select one: a. long-term investments. b. intangibles c. marketable securities. d. Cash.Financial contracts are those which give simultaneous rise to the financial assets of one entity and financial liability or equity of another equity?
