Which Statement Is Correct About Financial Instruments

question 71

Multiple Choice

Which statement is correct about financial instruments?

• A)A contract whose value changes according to a specified variable, requires little or no initial investment and is settled at a future date.
• B)A contract that gives the holder the residual interest in an entity after deducting all of its liabilities.
• C)Any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.
• D)Any contract that entitles the holder to joint interest in an entity after deducting all of its liabilities.

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Definitions:

Planning

The act of organizing, outlining goals, and formulating strategies to achieve specific objectives.

Key Message

The most important or central piece of information that one wishes to convey to an audience.

Uninterested Audiences

Audiences showing no interest or enthusiasm in the presented content or message.

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value.