Which of the Following Is NOT a Financial Asset

question 103

Multiple Choice

Which of the following is NOT a financial asset?

• A) a contractual right to receive cash or other financial asset from another party
• B) an equity instrument of another entity
• C) a contractual right to exchange financial instruments with another party under potentially favourable conditions
• D) a contractual right to pay cash or another financial asset to another party

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Definitions:

Check Drawn

A check issued by an account holder, instructing the bank to pay a specified sum of money from the account holder's account.

Payment of a Voucher

The process of issuing money in return for a voucher that proves an expense has been incurred.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.

Outstanding Checks

Checks that have been written and recorded in the issuing account but have not yet been cashed or cleared by the bank.