Which Statement Is Correct About Accounting for Financial Instruments

question 14

Multiple Choice

Which statement is correct about accounting for financial instruments?

• A)All financial instruments are accounted for at fair value through profit or loss.
• B)All are accounted for in accordance to their economic substance.
• C)All financial instruments are accounted for at amortized cost.
• D)All financial instruments are accounted for at fair value through OCI.

Understand the concept of transfer payments within government expenditures.

Assess the implications of demographic changes on government spending.

Differentiate between the costs to the private sector of government taxation and spending.

Identify the structure and impact of the federal tax system on different income groups.

---

Definitions:

Swiss Francs (CHF)

The currency of Switzerland, known for its strength and stability in the financial market.

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future date at a price agreed upon today.

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery.

Sale Record

The documentation and reporting of the sale transaction details including the product or service sold, amount, and date of the sale.