Which of the Following Can Be Described as Direct Finance

question 122

Multiple Choice

Which of the following can be described as direct finance?

• A)You take out a mortgage from your local bank.
• B)You borrow $2,500 from a friend.
• C)You buy shares of common stock in the secondary market.
• D)You buy shares in a mutual fund.

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Definitions:

IFRS 9

An International Financial Reporting Standard that deals with the accounting for financial instruments, covering the classification, measurement, and recognition of financial assets and liabilities.

Accumulated Other Comprehensive Income

Represents the total of all unrealized gains and losses that are not included in net income but affect shareholders' equity.

Economic Situation

The state of the economy at a given time, influenced by factors such as GDP, unemployment rates, and inflation.

Profitability

A measure of the efficiency and financial performance of a business, indicating its ability to generate income relative to revenue, assets, or equity.