reverse repurchase agreement (Repo) a) A contract to sell a security or precious metals at a certain date at a predetermined price b) A contract to purchase a security or precious metals at a certain date at a predetermined price c) A Reverse Repurchase Agreement is the sale of specific liquid securities on the condition to purchase them back at a certain date at a predetermined price d) A Reverse Repurchase Agreement is the purchase of specific

reverse repurchase agreement (Repo) a) A contract to sell a security or precious metals at a certain date at a predetermined price b) A contract to purchase a security or precious metals at a certain date at a predetermined price c) A Reverse Repurchase Agreement is the sale of specific liquid securities on the condition to purchase them back at a certain date at a predetermined price d) A Reverse Repurchase Agreement is the purchase of specific

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 6MC: A security in a portfolio of available-for-sale securities is transferred to the trading category....

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Which of the following correctly describes a repurchase agreement?a. The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price.b. The sale of a security with a commitment to repurchase the same security at a future date left unspecified, at a designated price.c. The purchase of a security with a commitment to purchase more of the same security at a specified future date.
Forward contracts are contracts to buy or sell a specified amount of an asset at a specified, fixed price with delivery at a specified future point in time. Which of the following is true about these contracts? a. The party that agrees to buy the asset is said to be in a short position. b. The party that agrees to sell the asset is said to be in a long position. c. The specified, fixed price in the contract is known as the forward rate. d. A forward contract requires an initial deposit of funds with the transacting broker.
Which of the following is true about forward contracts? a. The party that agrees to buy the asset is said to be in a short position. b. The party that agrees to sell the asset is said to be in a long position. c. The specified, fixed price in the contract is known as the forward rate. d. A forward contract requires an initial deposit of funds with the transacting broker.
A spot contract is defined as: a. An agreement involving the exchange of an asset for cash at a fixed price in the future. b. An agreement involving the immediate exchange of an asset for cash. c. An agreement involving the future exchange of an asset for cash at a price that is determined daily. d. An agreement involving the immediate exchange of an asset for a foreign currency.
A contract requiring a specified future monetary payment at a specified future point in time in exchange for the delivery of a specific asset is called a: *A. nonconvertible option.B. hedge.C. long contract.D. swap.
Examples of when an entity has retained substantially all the risks and rewards of ownership of transferred financial asset include A. All of these. B.A sale and repurchase transaction where the repurchase price is a fixed price or the sale price plus a lender's return. C.A sale of a financial asset together with a total return swap that transfers the market risk exposure back to the entity. D.A sale of short-term receivables in which the entity guarantees to compensate the transferee for credit losses that are likely to occur.
Which of the following is true about forward contract expiration? a.A deliverable forward contract stipulates that the short will pay the agreed-upon price to the long, who in turn will deliver the underlying asset to the short. b.Under cash settlement, it permits the short to pay the net cash value of the position on the delivery date. c.Under cash settlement, it permits the long to pay the net cash value of the position on the delivery date. d.Under cash settlement, it permits the long and short to pay the net cash value of the position on the delivery date.
AASB 13 defines exit price as: Select one: A. The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. B. The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. C. The price that would be received to sell an asset or paid to transfer a liability. D. A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g., a forced liquidation or distress sale).
A swap: Group of answer choices B. Gives the holder the right to see the underlying bond. A. Allows the buyer to purchase the underlying instrument. C. Is an OTC agreement to exchange the cash flows of two different securities. D. Not effective at managing interest rate risks.
Which of the following are exceptions for PFRS 9 application? CHOICES Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument as if the contracts were financial instruments Derivatives that are embedded in leases Contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity’s expected purchase, sale or usage requirements All of the choices
In order for the seller of securitized securities to remove the assets (i.e. mortgages) from the balance sheet, the sale must a. have a service agreement b. be overcollateralized c. be without recourse d. be made at a discount (original issue discount)
true or false ___________ if the fair value of the asset given u[ in exchange transaction that has a commercial substance is not realibly determinable, the asset receive is measured at its fair value, adjusted for any cash received or paid in the exchange. _________ If a party in an exchange transaction recognizes gain, this presupposes a loss on the part of other contracting party _________ PPE acquired by issuing securities are always recognized at the fair value of the securities issued. ___________ A PPE from donation is initially recognized at the fair value of the asset given up