A Financial Instrument Would Include

question 64

Multiple Choice

A financial instrument would include:

• A) only a written obligation and a transfer of value.
• B) only a written obligation and a specified date.
• C) a written obligation, a transfer of value, a future date, and certain conditions.
• D) a written obligation, a transfer of value, a specific date for payment, uncertain conditions.

Analyze and interpret the ratios of liabilities to stockholders' equity and their meaning for a company's financial health.

Distinguish between business and non-business transactions and their recording.

Grasp the flow of cash into and out of the company and its representation in financial statements.

Understand the principles of accounting and the equation.

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Definitions:

Water

A colorless, odorless, tasteless liquid that forms the seas, lakes, rivers, and rain, and is the basis of the fluids of living organisms.

Uni-

A prefix meaning "one" or "single," used to denote singularity or uniqueness in various terms.

Homeo-

A prefix in biology and medicine indicating similarity, sameness, or constancy.

Homeostasis

The ability of a living organism to maintain stable internal conditions despite changes in the external environment.