A Financial Asset Is

question 15

Multiple Choice

A financial asset is:

• A) Cash.
• B) A contractual right to exchange financial assets and financial liabilities with another entity under conditions that are potentially favourable to the entity.
• C) A contractual right to exchange financial assets and financial liabilities with another entity under conditions that are potentially unfavourable to the entity.
• D) Cash and a contractual right to exchange financial assets and financial liabilities with another entity under conditions that are potentially favourable to the entity.
• E) Cash and a contractual right to exchange financial assets and financial liabilities with another entity under conditions that are potentially unfavourable to the entity.

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Definitions:

Employee Annual Earnings

The total amount of income an employee earns in one year, including wages, salaries, bonuses, and other compensation.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance; a U.S. payroll tax to fund Social Security and Medicare benefits.

Employee's Portion

The part of payroll taxes and other deductions that employees are responsible for, which is withheld from their wages.

Taxes

Financial charges imposed by a government on individuals, corporations, and transactions to fund public spending and services.