Q4 Which of the following statements is NOT correct? (i) For an asset to be classified as a financial asset, cash or a right to receive cash or another financial asset should exist (ii) Cash constitutes a financial asset on its own. (iii) Any asset that can be interchanged for cash or cash equivalent should be classified as a financial asset even if there is no contractual right to receive cash or another financial asset. (iv) There is need for there to be a written and signed contract between buyer of the financial asset and the seller. Select one or more: a. (iii) and (iv) only b. (i), (ii), (iii) and (iv) c. (ii) only d. (i), (ii) and (iii) only
Q4 Which of the following statements is NOT correct? (i) For an asset to be classified as a financial asset, cash or a right to receive cash or another financial asset should exist (ii) Cash constitutes a financial asset on its own. (iii) Any asset that can be interchanged for cash or cash equivalent should be classified as a financial asset even if there is no contractual right to receive cash or another financial asset. (iv) There is need for there to be a written and signed contract between buyer of the financial asset and the seller. Select one or more: a. (iii) and (iv) only b. (i), (ii), (iii) and (iv) c. (ii) only d. (i), (ii) and (iii) only
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 4CYBK: Which of the following assertions is relevant to whether the cash balances reflect the true...
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Q4
Which of the following statements is NOT correct?
(i) For an asset to be classified as a financial asset, cash or a right to receive cash or another financial asset should exist
(ii) Cash constitutes a financial asset on its own.
(iii) Any asset that can be interchanged for cash or cash equivalent should be classified as a financial asset even if there is no contractual right to receive cash or another financial asset.
(iv) There is need for there to be a written and signed contract between buyer of the financial asset and the seller.
Select one or more:
a. (iii) and (iv) only
b. (i), (ii), (iii) and (iv)
c. (ii) only
d. (i), (ii) and (iii) only
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